MTG Acquires PlaySimple for $360 Million

MTG Acquires PlaySimple in Significant Deal

Modern Times Group (MTG), a prominent Swedish gaming company, has completed the acquisition of Indian game developer PlaySimple for a minimum of $360 million, as announced by both organizations on Friday.

The acquisition will be financed with 77% cash and the remaining 23% in MTG company shares. Furthermore, an additional performance-based bonus of $150 million has been allocated, contingent upon the achievement of specific, currently undisclosed, performance targets.

A Major Exit for an Indian Startup

This transaction represents one of the most substantial exits within the Indian startup landscape. PlaySimple initially secured $4 million in Series A funding in 2016 from Elevation Capital and Chiratae Ventures, at a valuation of approximately $16 million.

Notably, the startup’s total external investment remained modest, totaling just $4.5 million throughout its journey, which began in Bangalore.

Impressive Revenue Growth

The financial performance of PlaySimple has been particularly noteworthy. Revenues surged by 144% year-over-year, reaching $83 million in the previous year. The company was also projected to generate over $60 million in revenue during the first half of 2021.

PlaySimple’s portfolio includes nine popular word games, such as “Daily Themed Crossword,” “Word Trip,” “Word Jam,” and “Word Wars.”

swedish gaming firm mtg acquires india’s playsimple for $360 million

Statements from PlaySimple Leadership

Siddhanth Jain, Suraj Nalin, and Preeti Reddy, PlaySimple’s co-founders and management team, jointly expressed their pride in the games developed and the infrastructure built by their team.

They stated their anticipation of integrating their proprietary technology into MTG’s broader gaming portfolio, expanding into the European market, and continuing to innovate with new game development.

Future Plans for PlaySimple

With over 75 million installs and nearly 2 million daily active users, PlaySimple’s free-to-play games have achieved significant traction. The company intends to launch several new titles later this year and is also planning an expansion into the card game genre.

MTG’s Strategic Expansion

Maria Redin, MTG Group President and CEO, highlighted PlaySimple as a rapidly expanding and profitable game studio. She emphasized its position as a leading developer of free-to-play word games, representing a new and exciting genre for MTG.

MTG, which recently acquired Hutch and Ninja Kiwi, views PlaySimple as a key component in building a more diversified gaming vertical. The firm believes that scaling and diversifying its GamingCo subsidiary will enhance operational performance and create a more resilient business model.