PlayStudios to acquire casual game developer Brainium for at least $70m
Through the deal, PlayStudios will add a number of popular casual games such as solitaire, sudoku and mahjong to its portfolio. The business added that the deal will more than double the number of average daily active users of its products.
The acquisition includes a $70m up-front cash payment, plus a further contingent consideration of undisclosed size, depending on the performance of Brainium between now and the end of the year.
PlayStudios’ founder and chief executive Andrew Pascal said the deal would also diversify the business’ income streams as Brainium relies more on advertising revenue than the existing PlayStudios brands, which are more focused on in-app purchases.
“The acquisition of Brainium brings a suite of thoughtfully designed and highly engaging casual games to PlayStudios,” he said. “It also further diversifies our business by complementing our largely in-app-purchase-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.”
Scott Willoughby, chief operating officer of Brainium Studios, said PlayStudios’ resources would help his business grow further.
“PlayStudios is the perfect home for Brainium as we enter this next phase of growth,” Willoughby said. “We look forward to joining their talented team, leveraging their vast strategic resources and offering the unique playAWARDS platform to Brainium’s loyal player base.”
PlayStudios went public in June 2021, after agreeing a deal with special purpose acquisition company Acies Acquisition Corporation to list on the Nasdaq Stock Exchange.