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Source=W Games |
[Alpha Biz= Kim Sangjin] WGames announced on the Thursday that it has completed the acquisition agreement for Turkish casual game developer Paxie Games.
WGames agreed to pay approximately 39.4 billion KRW in cash and treasury stock for a 60% stake in Paxie Games. The remaining 40% stake will be gradually acquired over the next three years, based on revenue growth and profitability. The acquisition is expected to be completed in the first quarter of next year, pending approval by Turkey's competition authorities.
Paxie Games has gained recognition in the merge (synthesis) game genre. Merging, a subgenre of puzzles, involves combining objects to create new ones and is gaining popularity in North American and European puzzle markets. Paxie Games' flagship title, Merge Studio, has achieved significant success with 28 million cumulative users and approximately 41 billion KRW in cumulative revenue.
In addition to its main business in social casino games, WGames is focusing on diversifying into iGaming and casual genres. The company has launched casual games such as Let's Brick and Divine Match through its internal studios, as well as a collectible RPG titled We Are All Friends.
WGames has expressed its intention to pursue mergers and acquisitions (M&A) of global gaming companies to enhance its competitiveness in the casual gaming sector. The company expects to strengthen its casual game development capabilities by leveraging Paxie Games' creativity and proven development skills.
WGames evaluated the acquisition price based on Paxie Games' recent three-month revenue, applying a valuation of 1.8 times the annual revenue of the 60% stake. The company believes this is an attractive valuation compared to market averages.
As for the remaining 40% stake to be acquired in the future, WGames has set a condition that the acquisition price can be paid entirely in treasury stock. This approach is seen as efficient capital utilization and aligns the interests of both companies.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
