Playtika has officially agreed to acquire Innplay Labs, an Israeli mobile gaming studio, for a potential sum of $300.0 million (£241.4 million/€281.5 million). The initial payment from Playtika is set at $80.0 million, with the final amount subject to certain conditions specified in the contract. The exact closing date for this acquisition remains undisclosed, pending standard closing conditions.
Established in 2019, Innplay Labs is known for titles like Water Ride, Brix Master, and Animal Kingdom. The studio has received investments from various sources, including Vgames, a venture fund dedicated to game entrepreneurs. Playtika’s CEO, Robert Antokol, highlighted that this acquisition aligns with the company’s strategic goal of expanding its portfolio, particularly in the Luck Battle gaming genre. He emphasized leveraging their expertise in live operations and proprietary technology to drive sustainable growth.
Antokol also praised Innplay Labs for its innovative approach and expressed excitement about integrating their offerings, like Animals & Coins, into Playtika’s repertoire. Innplay Labs’ CEO, Ore Gilron, expressed confidence that becoming part of Playtika’s portfolio would elevate their brand to new heights and build on the rich gaming experiences they currently offer.
Playtika Ramps Up Merger and Acquisition Initiatives
This acquisition represents Playtika’s second major move this quarter, following the recent agreement to acquire the Youda Games content portfolio from Azerion for €81.3 million. The Youda Games collection features gambling-related titles like Governor of Poker. Playtika is set to take ownership of the entire portfolio, pending completion of the deal by the resolution of the third quarter, subject to customary closing conditions.
Earlier this year, Playtika made an unsuccessful attempt to acquire Rovio Entertainment, the developer behind Angry Birds. Despite this, Playtika has remained active in the M&A space, showcasing resilience and adaptability within the gaming industry. In the second quarter, Playtika reported a 2.5% decline in income compared to the last year, reaching $642.8 million by the end of June.
This dip in revenue was attributed to a 9.9% decrease in social casino games revenue, offset by a 3.7% increase in casual games revenue and a 6.3% climb in Blitz Bingo revenue. Average daily paying users also slightly decreased by 1.0% to 307,000, but the average payer conversion rose by 3.2%. Despite these fluctuations, reduced costs led to a substantial 340.5% rise in comprehensive net profit, reaching $90.3 million. Furthermore, the adjusted EBITDA for the quarter increased by 6.7% to $215.0 million.