Mobile games developer Playtika (NASDAQ: PLTK) announced on Wednesday that it will pay $700 million to acquire competitor SuperPlay, with a possible additional contingent payment that could increase the total to $1.25 billion. 

Both companies based in Israel have had their boards approve the agreement. Playtika mentioned that the total acquisition cost might reach $1.25 billion if privately-owned SuperPlay meets "specific financial goals for 2025, 2026, and 2027." These consist of modified earnings prior to interest, taxes, depreciation, and amortization (EBITDA) and revenue goals. The purchase enhances Playtika’s presence in the board and coin looter sectors of the mobile gaming industry.

"Founded in 2019 by former Playtika employees Gilad Almog and Eyal Netzer, along with industry veteran Elad Drory, SuperPlay has emerged as expert game makers with two successful titles — Dice Dreams, a fast-growing Coin Looter game, and Domino Dreams, a popular Board game, and two more games currently in development,” according to a statement issued by Playtika.

The deal is anticipated to finalize in the fourth quarter. 

Reasons the Agreement is Significant for Playtika 

Playtika's shares have declined by 22% in the last 12 months, and over three years since the company's IPO, investors have expressed concerns regarding monthly user growth and reliance on a limited number of games like Bingo Blitz, Caesars Slots, Slotomania, and World Series of Poker (WSOP). 

The acquisition of SuperPlay could alleviate some of those worries by introducing new growth opportunities into the Playtika portfolio — which has expanded through acquisitions and encompasses some of the top-grossing mobile games across various app stores. 

“In 2024, both Dice Dreams and Domino Dreams have grown rapidly, boasting a combined 1.7 million Average Daily Active Users as of August,” added Playtika in the statement.

Ex-employees of Playtika, Gilad Almog and Eyal Netzer, established SuperPlay in 2019 and will keep managing SuperPlay as a separate studio within the Playtika group. 

SuperPlay Drives Expansion for Playtika 

SuperPlay could swiftly enhance Playtika’s revenue partly because of the success of the previously mentioned Dice Dreams. That game came out in 2024 and by July, it exceeded $400 million, largely aided by the 2021 launch of competitor Monopoly Go!

"In the three years previous to MONOPOLY GO!’s release, Dice Dreams grossed $125 million: a significant success by most standards. However, since MONOPOLY GO!’s release, Dice Dreams has become supercharged, earning the remaining $275 million to hit this $400 million milestone in a year and a few months,” noted SensorTower.

The research company emphasized that the United States is the main market for both games, noting that although the Monopoly game has gained popularity, it has not affected Dice Dreams' market share.