Playstudios has announced the acquisition of casual games publisher, Brainium, for $70m. Payment will consist of a cash payout with “contingent consideration” linked to Brainium’s performance from now until the transaction’s close date, which is scheduled for December 31, 2022.
Brainium Studios COO Scott Willoughby noted that the acquisition falls in line with the company’s strategic expansion plan.
He commented: “Playstudios is the perfect home for Brainium as we enter this next phase of growth. We look forward to joining their talented team, leveraging their vast strategic resources, and offering the unique playAWARDS platform to Brainum’s loyal player base.”
Under the terms of the deal, Playstudios will add several casual games to its portfolio, including Solitaire, Spider Solitaire, Sudoku and Mahjong. The company number of average daily users will also double in size.
Playstudios Founder and CEO Andrew Pascal commented: The acquisition of Brainium brings a suite of thoughtfully designed and highly engaging casual games to Playstudios. It also further diversifies our business by complementing our largely in-app-purchase (IAP) based revenue model with a meaningful amount of advertising revenue.
“We look forward to welcoming the Brainium team and working together to fully leverage our combined strengths in order to put real-world rewards in the hands of significantly more players.”
Once the transaction is complete, Brainium will retain its leadership team and brand name. The company currently services two million daily users and offers its customer base 10 titles.
Playstudios EVP of Corporate and Business Development Jason Hahn said: “The acquisition of Brainium checks all the boxes on our growth strategy: it’s accretive to earnings, it more than doubles our average daily active users, expands our portfolio of games in new genres, diversifies our revenue streams, and advances our playAWARDS platform position, all of which further establish our position as leaders in rewarded play."
