Mobile games specialist Mag Interactive has acquired Swedish studio Apprope.
The deal has been secured for an upfront cash purchase of SEK 50 million ($5.9 million). However, depending on profit permanence over the next three years, an additional SEK 50 million ($5.9 million) could be exchanged.
The closing of the agreement will take place on January 4th, 2021.
"We have always been big fans of MAG. They have repeatedly shown a great flair for entertaining games, with many classic and new exciting titles in their successful portfolio," said Apprope CEO Markus Wedenborn.
"That's why we see Daniel's and MAG's trust as proof of Apprope's strength and potential - and we are incredibly proud and inspired to join the same creative family. It will be exciting to get off to a flying start next year by taking part in the opportunities to grow that will result from close collaboration - and create magic together."
Founded in 2012 by Daniel Lodin and Wedenborn, Apprope is best known for its word-based title Word Bubbles. Since release, the game has generated SEK 100 million ($11.8 million).
Most recently, Apprope released Word Mansion for both iOS and Android devices. Since its launch, the game has seen a significant increase in sales and downloads.
Overall, Apprope's library has received 55 million downloads. As Lodin and Markus Wedenborn are the only members of the team, they will now work from Mag Interactive's headquarters in Stockholm.
In its most recent financial year, the Swedish studio generated SEK 17.5 million ($2.1 million). Of which SEK 11.4 million ($1.4 million), was profit.
Welcome to the family
"We are impressed by Apprope's combination of rapid development and high quality, together with a clear focus on profitability," said Mag Interactive CEO Daniel Hasselberg.
"They have structured their product development in such a way that we see good opportunities to build more products with the same game engine as Word Mansion. The founders Daniel Lodin and Markus Wedenborn are both entrepreneurial people who fit perfectly with MAG.
"They bring a strong self-drive combined with a deep understanding of both the entertainment value and the commercial part of mobile gaming. We see clear synergies in the future where MAG can contribute with experience and technology in, for example, game analysis and user acquisition.
"We also provide a corporate culture that enables them to do what they do best: to build quality games at a fast pace. We look forward to welcoming Daniel and Markus to the MAG family in January."
Earlier this year, Mag Interactive acquired Primetime developer Sventertainment AB.