DoubleDown Interactive, a leading gaming company, delivering unique player experiences across a variety of genres, has entered into a Share Purchase Agreement to acquire SuprNation AB, a Swedish limited liability company for cash consideration of approximately $35m, on a cash free and debt free basis and subject to final 2022 financial review.
SuprNation is a European-based i-Gaming company providing differentiated casino gaming experiences.
SuprNation generated preliminary revenue for the nine months ended 30 September 2022 of approximately $18.3m based on management’s estimates. It has a strong presence in certain regulated European markets with gaming licenses in jurisdictions including Sweden, Great Britain, Malta and the Isle of Man. Its flagship title, Duelz.com, offers real money gaming with unique peer-to-peer gamification and social features that improve monetization and engagement.
There are significant synergy opportunities with DoubleDown expected through leveraging marketing, technology and gaming content, back office in-sourcing and potential native Apple/Android app development
Based on its many years of experience in online gaming, the Company expects to leverage its expertise in acquiring new users through performance marketing, improve existing services using its extensive software engineering and DevOps capabilities, and enhance existing services as well as develop new ones by leveraging its broad portfolio of casino game content.
“We are pleased to announce the first acquisition since DoubleDown’s IPO that we believe complements our existing social casino franchise well and exposes DoubleDown to new growth markets,” said In Keuk Kim, Chief Executive Officer of the Company. “The acquisition of SuprNation increases our presence in the European i-Gaming market with other geographies expected to be added over time. Their gaming titles and captivating gamification features have created a loyal customer base that we aim to grow while capturing synergy opportunities, including incorporating our deep online gaming experience. As we evaluate inorganic growth opportunities, we will continue to focus on gaming businesses that offer clear synergies with our existing strengths.”
Joakim Stockman and Henric Andersson, Co-Chief Executive Officers of SuprNation commented, “We are extremely excited to become a part of DoubleDown and are looking forward to leveraging the obvious strengths of both companies in the years to come. As part of DoubleDown, we expect to accelerate our expansion and grow our real money gaming foothold through continued development of unique products and efficient marketing strategies.”
This all-cash acquisition is expected to close during the second quarter of 2023, subject to satisfaction or waiver of certain customary closing conditions, including without limitation, certain regulatory approvals. Following the closing, SuprNation will be a direct, wholly-owned subsidiary of DoubleDown Interactive LLC, a wholly-owned US subsidiary of the Company. If the closing conditions are not satisfied or waived prior to nine months after execution of the Agreement, then either the sellers or the Company may terminate the Agreement.