US gaming supplier Bally Technologies has completed its $100m acquisition of Tel Aviv-based social casino studio Dragonplay, just under a month after the deal was originally announced.
Bally will pay $51m in cash up front for the business, with a further $49m in earn-out considerations and employee retention payments, based on the company meeting financial performance targets, over the next 18 months.
The deal was confirmed on June 5th following negotiations between the two companies, with plans for Dragonplay to bolster its customer-facing products by launching free-to-play variants of Bally’s popular slot games, similar to the way in which the IGT-owned DoubleDown casino has leveraged its parent company’s content.
It first launched the social poker app Live Hold’em Pro for Android devices, and has since rolled the product out on iOS and Facebook. The company has also diversified into other game genres and platforms, launching Wild Bingo, Dragonplay Poker, Farm Slot and Twister 8, as well as Dragonplay Slots, which is also available for Windows Phone.
In the twelve months ending March 31st 2014, it generated revenue of $30m, resulting in earnings before interest, tax, depreciation and amortisation (EBITDA) of more than $10m for the period.
At the time of the announcement Bally chief executive Richard Haddrill commended Dragonplay’s ability to acquire, monetise and retain social gaming players.
“We expect this strategic acquisition to help position Bally at the forefront of social casino gaming by leveraging our world-class content, including proprietary table games and award-winning video slots, on Dragonplay’s increasingly popular social casino,” he said. “Additionally, with the majority of its revenues generated from smartphones and tablets, Dragonplay has proven remarkable foresight and leadership in the mobile space, which is the fastest growing segment of social gaming.”