Playtika to acquire SuperPlay for $700M upfront

Playtika announced it has entered into a definitive agreement to acquire SuperPlay, a mobile gaming company based in Tel Aviv, Israel, for $700M, and additional contingent consideration of up to $1.25B, subject to achieving certain financial targets over three years. Founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, along with industry veteran Elad Drory, SuperPlay has emerged as game makers with two successful titles – Dice Dreams, a Coin Looter game, and Domino Dreams, a board game, and two more games currently in development. In 2024, both Dice Dreams and Domino Dreams have grown, boasting a combined 1.7M average daily active users as of August. Gilad and Eyal will continue to lead SuperPlay as its own studio within Playtika. Playtika will acquire SuperPlay for $700M in up-front consideration, subject to customary working capital adjustments, which is expected to be funded using balance sheet cash. Additional contingent consideration of up to $1.25B is subject to SuperPlay achieving certain financial targets for 2025, 2026, and 2027. Annual earnout quantum and eligibility are contingent on both revenue and adjusted EBITDA performance. The earnout payments, if any, are expected to be funded via cash generated from ongoing operations and the company’s balance sheet. Playtika is evaluating its financing alternatives and debt maturities in the near-term. The Company remains committed to its quarterly dividend and capital return program. This transaction has been approved by the board of directors of Playtika and of SuperPlay. The transaction is expected to close in the fourth quarter of 2024. The proposed acquisition is subject to the satisfaction of customary closing conditions and regulatory approvals. The company will provide updated M&A capital allocation guidance as part of FY24 earnings. Playtika will update its guidance for the fiscal year during Q3 earnings.