Modern Times Group has increased its controlling stake in mobile games developer InnoGames.

As per the agreement, MTG now owns 68 per cent of the German studio. Previously, it held 51 per cent of the shares, and it had done since May 2017. However, the parent company first acquired a stake of 21 per cent in InnoGames back in 2016.

Both MTG and InnoGames have agreed that the former's call options for the remaining portion of the company will be cancelled. As such, MTG can purchase the extra 17 per cent for €106 million ($128.5 million).

In November 2019, the German games studio surpassed $1 billion in lifetime revenue.

"We established InnoGames to make great games that people want to play for decades," said InnoGames CEO and co-founder Hendrik Klindworth.

"Today, we have an iconic set of live games and a strong pipeline of new exciting titles that have shown outstanding results in early tests. 2020 has been another record-breaking year for us, and we are excited to boost the new gaming group's performance with our extensive experience.

"We already have a successful long-term relationship with MTG, and we see great values in aligning even closer by building up a strong gaming group together with a clear focus on free-to-play casual and mid-core games."

Holding

Furthermore, a new holding company, MTG Gaming AB has been established, with all shares in InnoGames and Kongregate being transferred to the new firm.

Moreover, MTG will hold 71.85 per cent of shares in the new holding company.

"Through the creation of a new joint gaming group together with InnoGames' founders, InnoGames' best-in-class expertise in user acquisition, live operations and business intelligence strategies can now benefit all of MTG's gaming vertical companies, as well as future new acquisitions," said MTG CEO and group president Maria Redin.