- Expanding into a new set of change/merge-2 types with high ROAS and short payback period
- Enter into one of the largest and fastest growing mobile gaming genres
- The acquisition of Paxie Games for up to US$67.0 million (US$27.0 million upfront and up to US$40.0 million earnings depending on performance), is expected to leverage DoubleU Games' marketing capabilities to effectively expand growth
SEOUL, South Korea–(BUSINESS WIRE)–DoubleU Games Co., Ltd. has entered into a contract. (192080:KS), a leading developer of social casino games, has agreed to acquire Turkish gaming studio Paxie Games, developer of Merge Studio. Fashion transformation. DoubleU Games will acquire a 60% stake for $27.0 million at closing, with the remaining 40% acquired over three years, subject to achieving certain financial targets, leading to full ownership by the end of year three. The acquisition will be financed through a combination of treasury stock and cash. The deal is expected to close in the first quarter of 2025.
The acquisition of Paxie Games represents DoubleU Games' strategic entry into the rapidly growing Merge-2 market. This transaction is expected to add meaningful growth and synergies to DoubleU Games, as Paxie Games generates significant downloads and cumulative revenue and consistently ranks in the top five within the Merge-2 category, based on Sensortower. It is worth noting that this acquisition will also mark the first time that popular DoubleU Games games will become playable in Korea, a significant achievement for DoubleU Games, which currently derives 100% revenue from the international market.
We believe the acquisition of Paxie Games represents an important step in securing an expanded portfolio of new mobile game titles, driving growth and opening new opportunities,” said Jay Choi, CFO.
We recognize that Paxie Games' competitive advantage lies in users' extended play time through intuitive gameplay, instant rewards, and seamless integration of meta and core game mechanics. In addition, its operational capabilities are enhanced by implementing diverse and creative LiveOps events.
We are excited about the amazing opportunities that await our company. Merge Studio, our rapidly expanding hit game, is just the beginning. Through our wide-ranging collaboration with DoubleU Games, we are poised for even greater growth by expanding our portfolio with exciting new games, reaching a wider audience, and continuing to grow our business.
By leveraging DoubleU Games' existing marketing network in the US, we plan to achieve significant growth and expand our reach. Paxie Games' combined expertise in game development and DoubleU Games' financial strength will pave the way for mutual success and pioneering innovation in the gaming industry, said Derenc Celik, CEO of Paxie Games.
Arma Capital, an Istanbul-based M&A advisory firm, provided financial advisory services to DoubleU Games in this transaction. Legal advisory services were provided by BASEAK to DoubleU Games.
An overview of the mobile games industry in Türkiye
Türkiye's gaming industry is characterized by a high concentration of small and medium-sized game studios, and has become a world-famous hub for new and existing mobile game studios.
Recent active M&A activities in the Turkish gaming market underscore the important role Türkiye plays in the global mobile gaming market. A notable example of this is Zynga's (NASDAQ:) acquisition of Turkish game developer Peak Games for $1.8 billion in 2020. Peak Games is known for its popular casual games, Toon Blast and Toy Blast, and this acquisition played an important role in boosting Zynga. A niche in the casual games market.
Turkish game developers have recently demonstrated their exceptional development capabilities by producing several international successful games. Dream Games stands out as a prime example, having gained global popularity with their global hit Royal Match.
About Baxi Games
Founded in 2021 by Dirinç Çelik, Hüseyin Anil Ozman, Refik Anil Bulut and Sarinur Basil, Paxie Games is headquartered in Istanbul, Türkiye. Its flagship title, Merge Studio: Fashion Makeover, successfully combines character-changing gameplay with Merge-2's puzzle-solving mechanics, catering to a wide audience, particularly female audiences. As of November 2024, the game has had over 25 million cumulative downloads, based on Sensortower. Other live titles include Tile Star and Mahjong Infinity.
About DoubleU Games
DoubleU Games Co., Ltd. It is a Korean company that develops social casino games. The company was founded in 2012 and was listed on the gaming market in 2019. DoubleU Games develops and services competitive mobile games globally and has acquired DoubleDown Interactive Co., Ltd. In 2017, it enjoys a strong position in the global social casino market.
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ir@doubleugames.com
Source: DoubleU Games Co., Ltd.
