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UPDATE: Zynga Has Completed The Acquisition Of 80% Of The Shares In Rollic For $180m

M&A | DEAL ANNOUNCEMENT DATE: 2 OCT 2020
WRITTEN BY | 04 Oct 2020
UPDATE: Zynga Has Completed The Acquisition Of 80% Of The Shares In Rollic For $180m
M&A

💵 Acquisition

  • American mobile game developer and publisher Zynga Inc. (Nasdaq: ZNGA) has completed the acquisition of 80% of the shares in of Turkey-based hyper-casual game developer & publisher Rollic for $180m, which is $12m higher than the originally announced purchase price of $168m

  • That marks the completion of the first part of Zynga’s deal to acquire 100% in Rollic. The remaining 20% of shares will be acquired over the next three (3) years through equal installments, depending on Rollic’s growth and profitability

  • Rollic maintains its executive and management team, including founder and Chief Executive Officer Burak Vardal, as well as its headquarters in Istanbul, Turkey

  • The implied EV is $225m, and the estimated valuation multiples are 2.25 EV/Rev and 11.25x EV/EBITDA based on the expected 2020FY results: $100m bookings with ~20% EBITDA margin

🧩 Strategic Rationale

  • With this deal, Zynga continues to build its Turkish hub of mobile game developers (Peak Games, Gram Games) and enters into the hyper-casual sector, diversifying product portfolio, increasing audience footprint with cross-selling opportunities, and potential profitability improvement (ads revenue typically has higher margins)

  • Zynga will most probably take some time to integrate recently acquired businesses and prove that it can accelerate synergy at such a large scale

🎲 Products

  • Rollic is a Turkey-based developer of hyper-casual mobile games with eight (8) of the studio’s titles reaching 1st and 2nd places in the U.S. App Store top free downloaded games

  • Rollic most recent releases Go Knots 3D and Tangle Master 3D are the top two most downloaded games in the U.S. App Store in Q2 2020

  • Rollic’s games reported to have over 5m DAU, 65m MAU, and over 365m downloads

  • The increased interest in mobile games during the Covid-19 pandemic has boosted Rollic downloads growth

💵 Previous Acquisitions

SOURCES: ZYNGA, POCKETGAMER, BUSINESSWIRE

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01 June 2020
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💵 Acquisition American mobile game developer and publisher Zynga Inc. (Nasdaq: ZNGA) has completed the acquisition of 80% of the ...
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M&A
Rollic
  • Established in December 2018

  • Headquarters – Istanbul, Turkey

  • Team of 40 employees

  • Founded by Burak Vardal, Deniz Başaran, Mehmet Can Yavuz

  • Mobile hyper-casual games developer

Zynga
  • Established in 2007, publicly traded on NASDAQ stock exchange since 2011

  • Headquarters — San Francisco, United States

  • Team of 1,883 employees (as of December 31, 2019)

  • Founded by — Mark Pincus, Eric Schiermeyer, Justin Waldron, Michael Luxton, Steve Schoettler, and Andrew Trader

  • Mobile game developer and publisher

  • Full year 2020 guidance: revenue — $1.8B, bookings — $2.2B (doesn’t include Rollic projections)

  • Latest interim presentation, 2019 annual report