💵 Acquisition
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MY.GAMES, a gaming division of Mail.ru Group, has acquired the controlling stake in the mobile game development studio DeusCraft and became the owner of 51.16% shares of the Target
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Maximum transaction price accounts for $49.1m, including:
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$14.1m upfront consideration
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up to $35m earn-out consideration to be paid in April 2021, if the company’s monthly revenue is about $15m as of Q1 2021
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The deal is performed by the participation of MGVC, the investment arm of MY.GAMES, and is expected to close in October 2020
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The consolidation of the company is expected to have a slight negative impact on MY.GAMES EBITDA in 2020 due to the heated development process of two new mobile titles
🧩 Strategic Rationale
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The consolidation perfectly fits MY.GAMES strategy to become a top-25 games company in the world, with growing M&A activity being a part of it
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MY.GAMES will be able to benefit from the expertise of DeusCraft’s team, which has a vast background of experience in the development of casual mobile games (15+ years) especially when it comes to the new time management genre
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As for Deus Craft, the studio will be able to grow and expand globally, using the marketing and analytical expertise of MY.GAMES
🎲 Products
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DeusCraft is a casual mobile games developer behind such titles as Grand Hotel Mania, Game of Evolution: Idle Clicker and Merge Life, Dress Up Fever, Battle Instinct, and others
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The company is best known for its Grand Hotel Mania game, which was released in January 2020 and by now has been downloaded more than 4.1 million times with a peak of 1.7 million downloads in August. Most of the downloads came from the U.S. market
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Combined, all the games of the company has been downloaded about 6 million times
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Currently, Deus Craft is working on two new titles that are expected to be released within the next 12 months
💸 MY.GAMES M&A Activity
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In March 2020, MY.GAMES acquired control over mobile games developer InGame. MY.GAMES has also invested in Reaction Games and US-based Hypematers
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Over the course of 2019, the company had 7 acquisitions, with 2 of them being gaming related:
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In May 2019, the control in mobile games developer Panzerdog, known for tactical shooter Tacticool
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In July 2019, the control in mobile games developer SWAG MASHA, known for interactive story game Love Sick
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Over the course of 2018, the company had 4 acquisitions, with 2 of them being gaming related:
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In January 2018, MY.GAMES acquired an esport group of companies operating under the ESforce brand
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In April 2018, the company acquired control in mobile games developer BitGames
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Over the course of 2016, the company had 3 acquisitions, with 1 of them being gaming related:
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In October 2016, MY.GAMES acquired 100% of the mobile games developer Pixonic
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SOURCES: Mail.Ru Group, LSE
