In one of the largest exits among the Indian gaming startups, PlaySimple has been acquired by Swedish gaming major Modern Times Group (MTG). The companies have closed a deal of about $360 million (Rs 2691 crore) for the acquisition.
Other than the set amount, there is also a $150 million (Rs 1,121 crore) reward for the Indian gaming firm if it manages to hit certain performance metrics.
As for the acquisition amount of $360 million, MTG will pay 77% of the acquisition sum to the Indian game developer in cash. The rest of the amount for a 100% acquisition will be paid in the form of MTG class B shares. MTG states that it will “call for an Extraordinary General Meeting to resolve on the consideration shares.”
In its statement, MTG cites PlaySimple’s exponential market growth as the propellant for this acquisition. It mentions that the company is one of India’s leading game developers and publishers and “is one of the global leaders in the fast-growing mobile word games genre.”
PlaySimple grew its revenues by 144% in 2020 to USD 83 million. The growth is projected to continue in 2021, with the first half revenues up by approximately 82%.
Going forward, PlaySimple plans to launch four new games this year and might also expand into the card games genre.