- The company expands in the word puzzle category by acquiring
the Swedish game studio Apprope
STOCKHOLM, Dec. 21, 2020 /PRNewswire/ -- MAG Interactive
announces today the acquisition of the Swedish game studio Apprope
through an initial cash purchase price of SEK 50 million on the day of closing with an
additional purchase price of a maximum of SEK 50 million based on profits for the next
three years. The purchase is financed through existing cash and
bank financing. Closing takes place 4
January 2021.
Apprope is a Swedish mobile game developer, founded in 2012. The
company develops games aimed at a casual audience, with a focus on
games within the word category. 55 million players have played
Apprope's games and several of their products have ranked high on
the US charts. The company is most famous for the word game Word
Bubbles, which has in the past six years generated around ten
million downloads, had sales of approximately SEK 100 million and reached the top download
charts in the word game category in the US on both App Store and Google Play.
In the fall of 2020, the word puzzle game Word Mansion launched
on iOS and Android, and the game has grown rapidly in both
downloads and sales. Word Mansion's puzzle mechanic is framed by an
interactive story that revolves around renovation and decoration.
Known as a meta-game, this format has increased in popularity
within the casual genre in recent years. The acquisition of Apprope
creates an opportunity for MAG to accelerate growth in this
category of games.
"We are impressed by Apprope's combination of rapid development
and high quality, together with a clear focus on profitability.
They have structured their product development in such a way that
we see good opportunities to build more products with the same game
engine as Word Mansion. The founders Daniel
Lodin and Markus Wedenborn are both entrepreneurial people
who fit perfectly with MAG. They bring a strong self-drive combined
with a deep understanding of both the entertainment value and the
commercial part of mobile gaming. We see clear synergies in the
future where MAG can contribute with experience and technology in,
for example, game analysis and user acquisition. We also provide a
corporate culture that enables them to do what they do best: to
build quality games at a fast pace. We look forward to welcoming
Daniel and Markus to the MAG family in January", says Daniel Hasselberg, CEO of MAG Interactive.
In addition to Word Mansion, Apprope has a portfolio of word and
trivia games that have generated a surplus of more than
SEK ten million per year in recent
years. The company has been profitable since the start and recorded
sales of SEK 17.5 million in the most
recent financial year, which ended in August
2020, with a profit of SEK 11.4
million.
"The profitability aspect has been important in designing this
deal. The entire variable part of the purchase price is based on
the sellers receiving a share of future profits. MAG and the
founders of Apprope thus receive joint incentives to maximize the
profitability of Apprope over the next three years", Daniel Hasselberg continues.
The founders of Apprope, Daniel
Lodin and Markus Wedenborn, are the company's only employees
and from closing they will work from MAG's headquarters in
Stockholm.
"We have always been big fans of MAG. They have repeatedly shown
great flair for entertaining games, with many classic and new
exciting titles in their successful portfolio. That's why we see
Daniel's and MAG's trust as proof of Apprope's strength and
potential - and we are incredibly proud and inspired to join the
same creative family. It will be exciting to get off to a flying
start next year by taking part in the opportunities to grow that
will result from close collaboration - and create magic together",
says Markus Wedenborn, CEO of Apprope.
Apprope continues as an independent company within the MAG
Group, but with access to the services MAG can offer to create
maximum growth and profitability.
This is information that MAG Interactive AB
(publ) is obliged to make public pursuant to the EU Market
Abuse Regulation. The information was submitted for publication,
through the agency of the contact persons set out below, at 08:00
on December 21, 2020.
For additional information, please contact:
Daniel Hasselberg / CEO /
+46 (0)8 644 35 40 / daniel@maginteractive.se
Magnus Wiklander / CFO /
+46 (0)8 644 35 40 / magnus.wiklander@maginteractive.se
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