Israeli mobile games company Playtika Holding Corp. (Nasdaq: PLTK) and digital ad and entertainment media platform Azerion Group N.V. (Euronext: AZRN) announced today they have entered into a definitive agreement for Playtika to acquire from Azerion its Youda Games portfolio of games. These include social card themed title Governor of Poker 3, for an initial cash consideration of €81.3 million, with milestone payments that could see the deal rise to €150 million
Playtika CFO Craig Abrahams said, "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 unrivaled LiveOps expertise and proprietary technology stack to optimize and scale games, strengthening our market position. 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."
Azerion Group CRO Sebastiaan Moesman added, "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 deal is expected to complete by the end of the third quarter 2023 subject to the satisfaction of customary closing conditions.
Herzliya-based Playtika's share price is currently down 0.92% on Nasdaq at $11.83, giving a market cap of $4.327 billion.
Published by Globes, Israel business news - en.globes.co.il - on August 1, 2023.
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