Thursday June 5,2014 : BALLY BUYS ISRAELI SOCIAL GAMES DEVELOPER
Dragonplay valued at $100 million.
Tel Aviv based social games developer Dragonplay is worth as much as $100 million, it appears; the company has been acquired by the American games and casino supply company Bally Technologies, which will pay $51 million in cash, along with networking capital to the developer's shareholders in return for the total equity of the company.
In addition, earn-out considerations could be paid up to $49 million, subject to the developer achieving set financial performance levels over the next one and a half years.
Bally intends to complete the deal by July this year, and expects the company to contribute to its earnings next year.
In a statement Thursday Bally revealed that for the year ended March 31 2014 Dragonplay posted EBITDA of $10 million from revenues of $30 million.
The developer has achieved impressive performance levels in social gaming over the past three years, proving that it is capable of attracting players, monetising them and keeping them with a mix of compelling games and resilience in the space, Bally CEO Richard Haddrill commented.
Dragonplay is now available on Android, iOS and Facebook platforms, offering its 3 million monthly active users a selection of quality slot, bingo, casino, poker and card apps, he said.
“We expect this strategic acquisition to help position Bally at the forefront of social casino gaming by leveraging our world-class content, including proprietary table games and award-winning video slots, on Dragonplay’s increasingly popular social casino,” Haddrill said.
“Additionally, with the majority of its revenues generated from smartphones and tablets, Dragonplay has proven remarkable foresight and leadership in the mobile space, which is the fastest growing segment of social gaming.”
Sharon Tal, founder and CEO of Dragonplay, said that the studio would redevelop Bally content as free-play games.
“I am confident that leveraging Bally’s vast library of proven slot and proprietary table game content will provide our loyal player base with an even more robust experience, which is expected to augment Dragonplay’s growth trajectory,” he said.