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MY.GAMES Acquires DeusCraft For Up To $49m

WRITTEN BY | 08 Oct 2020
MY.GAMES Acquires DeusCraft For Up To $49m
M&A

💵 Acquisition

  • 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

  • Maximum transaction price accounts for $49.1m, including:

    • $14.1m upfront consideration

    • 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

  • The deal is performed by the participation of MGVC, the investment arm of MY.GAMES, and is expected to close in October 2020

  • 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

  • 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

  • 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

  • As for Deus Craft, the studio will be able to grow and expand globally, using the marketing and analytical expertise of MY.GAMES

🎲 Products

  • 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

  • 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

  • Combined, all the games of the company has been downloaded about 6 million times

  • 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

  • In March 2020, MY.GAMES acquired control over mobile games developer InGame. MY.GAMES has also invested in Reaction Games and US-based Hypematers

  • Over the course of 2019, the company had 7 acquisitions, with 2 of them being gaming related:

    • In May 2019, the control in mobile games developer Panzerdog, known for tactical shooter Tacticool

    • In July 2019, the control in mobile games developer SWAG MASHA, known for interactive story game Love Sick

  • Over the course of 2018, the company had 4 acquisitions, with 2 of them being gaming related:

    • In January 2018, MY.GAMES acquired an esport group of companies operating under the ESforce brand

    • In April 2018, the company acquired control in mobile games developer BitGames

  • Over the course of 2016, the company had 3 acquisitions, with 1 of them being gaming related:

    • In October 2016, MY.GAMES acquired 100% of the mobile games developer Pixonic

SOURCES: Mail.Ru Group, LSE

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11 December 2020
MY.GAMES Invests In 3 Mobile Games Developers
💵 Acquisition MY.GAMES, a gaming division of Mail.ru Group, has acquired the controlling stake in the mobile game development ...
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EARLY VENTURE
DeusCraft
  • Founded in 2019

  • Headquarters – Nicosia, Cyprus / with offices in Moscow, Saint Petersburg, and Novosibirsk

  • Team of 70+ employees

  • Founded by Sergey Shatokhin, Dmitriy Shubeykin and others

Mail.Ru Group
  • Established in 1998 (registered as Mail.ru Group in 2005)

  • Headquarters — Moscow, Russia / offices in United States, Сhina, South Korea, Netherlands, Cyprus, and Belarus

  • Team of 6,334 employees (by the end of 2019)

  • Internet Company, mainly known in the video game world for its international gaming brand MY.GAMES

  • 2019 annual financial report, Q3 2020 financial report