Izmir, Turkey-based hyper-casual game studio Ruby Games is set to be acquired by Rovio Entertainment. Ruby Games is the creator of the sixth most downloaded game of 2020, Hunter Assassin, and Streamer Life, the most downloaded game in the US market in July of this year.
As per the financial agreement, Ruby Games will be acquired over a number of tranches. An initial ‘down payment’ for 20% of the company at $10 million is expected to close by the end of Q3 of this year. 50% of the company will be purchased in October of 2022, with a figure "not exceeding $80 million" which will be tied to financial performance. The remaining 30% of the company will be acquired over the following five years.
Ruby Games was founded in 2018 and focuses on hyper-casual games. In total, the startup's portfolio has seen in excess of 600 million downloads. In H1 of this year, the company generated $7.8 million in revenues, with an adjusted EBITDA of $3.5 million.
‘’With the acquisition of hyper-casual game studio Ruby Games, we are taking an important step forward in our growth strategy. By entering the rapidly growing hyper-casual market we are enriching our audience base, and offering our players a more diverse portfolio of titles’’ says Alex Pelletier-Normand, CEO of Rovio. ‘’Ruby Games has launched several successful games and their hit-ratio is impressive. Expanding Rovio’s family with the talented and highly-agile developers of Ruby Games is exciting! Welcome to the flock!”