Israeli game maker Playtika has entered into a definitive agreement with digital advertising and entertainment media platform Azerion. Through the partnership, Playtika will acquire Azerion's Youda Games portfolio, including social card game Governor of Poker 3.
The deal is valued at 81.3 million euros ($89.1 million) up front, though an additional earnout amount based on performance could take the total price up to $165 million, or 150 million euros
This move follows a turbulent period for the company which was upgraded from "underperforming" to "neutral" by the Bank of America earlier this month.
“The acquisition of Youda Games’ card game portfolio, with its strong IP, is in line with Playtika’s strategic incremental growth approach of leveraging our unrivalled LiveOps expertise and proprietary technology stack to optimise and scale games, strengthening our market position,” said Playtika president and CFO Craig Abrahams.
“We believe this acquisition will be accretive to our financial performance and is part of our strategy to acquire proven franchises where we can add value.”
A change in focus
Discussing the reasons for selling Youda Games' portfolio, Azerion Group CRO Sebastiaan Moesman noted that while it remains a strong performer, it no longer fits into Azerion's business strategy.
“Over the past few years, we have transformed our business by scaling our digital advertising capabilities, developing our strategic portfolio of partner-led content and extending the presence and reach of our in-market commercial teams.
“As a result of this dynamic shift towards our digital advertising platform, social card games have become less strategic for Azerion, whilst remaining an attractive investment opportunity for an industry partner such as Playtika. This divestment will further simplify our business and help us to continue investing in and delivering on our growth ambitions.”
The transaction is expected to be completed by the end of Q3 2023, subject to the satisfaction of customary closing conditions. Azerion will disclose more details regarding the sale in its interim financial reports for Q2 and H1 2023.
We listed Playtika as one of the top mobile game makers of 2022. We'll be unveiling our list for 2023 in the coming weeks.
