Private Equity

Private Equity Fund Investments

Sweden's MTG acquires word games developer PlaySimple for $360-M

Press Release,   Economic Times  

Swedish gaming company Modern Times Group (MTG) has acquired 100% of Bengaluru-based word games developer PlaySimple for USD 360 million (about INR 2,686 crore) in a cash and stock deal. MTG, which bought the company through subsidiary MTG Gaming, will pay 77% of the acquisition price in cash and the remaining through its Class B shares. The deal includes additional performance-based payments worth USD 150 million in cash. The startup's early backers, including Elevation Capital (previously SAIF Partners) and Chiratae Ventures, will exit as part of the transaction. Elevation Capital owned a 19.7% stake, while Chiratae Ventures held 14.4% in the company. MTG has appointed EY as financial advisor and Norton Rose Fulbright (UK), J Sagar Associates (India) and Gernandt & Danielsson Advokatbyrå (Sweden) as legal advisors for the transaction. PlaySimple has appointed Aream & Co as financial advisor, Cyril Amarchand Mangaldas and Khaitan & Co as legal advisors and PwC as tax advisors. PlaySimple has developed and published a portfolio of nine casual games, including Daily Themed Crossword, WordTrip, WordJam, WordWars, WordTrek and Solitaire. These games have clocked an aggregate of over 75 million installs and seven million monthly active users, of which 1.9 million are daily active users. Swedish gaming company Modern Times Group (MTG) has acquired 100% of Bengaluru-based word games developer PlaySimple for USD 360 million (about INR 2,686 crore) in a cash and stock deal. MTG, which bought the company through subsidiary MTG Gaming, will pay 77% of the acquisition price in cash and the remaining through its Class B shares. The deal includes additional performance-based payments worth USD 150 million in cash. The startup's early backers, including Elevation Capital (previously SAIF Partners) and Chiratae Ventures, will exit as part of the transaction. Elevation Capital owned a 19.7% stake, while Chiratae Ventures held 14.4% in the company. MTG has appointed EY as financial advisor and Norton Rose Fulbright (UK), J Sagar Associates (India) and Gernandt & Danielsson Advokatbyrå (Sweden) as legal advisors for the transaction. PlaySimple has appointed Aream & Co as financial advisor, Cyril Amarchand Mangaldas and Khaitan & Co as legal advisors and PwC as tax advisors. PlaySimple has developed and published a portfolio of nine casual games, including Daily Themed Crossword, WordTrip, WordJam, WordWars, WordTrek and Solitaire. These games have clocked an aggregate of over 75 million installs and seven million monthly active users, of which 1.9 million are daily active users.

From the Venture Intelligence PE-VC Deal Database: Between Dec-14 and Nov-16, Playsimple had raised close to INR 30 crore from Chiratae Ventures and Elevation Capital. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)