Renowned curator of Angry Birds, Rovio Entertainment Corporation, has reportedly signed an agreement to acquire 100% shares in Ruby Games, a leading Turkey-based hyper-casual studio. Notably, Ruby Games developed the hit game, Hunter Assassin, which ranked as the sixth most downloaded game across the world in 2020.
Sources reveal that Rovio, with regards to the agreement, would be acquiring Ruby Games in multiple tranches. Under the first tranche, the company would acquire 20% of Ruby’s shares for $10 million in cash. Apparently, the anticipated closing for this first tranche is slated for the end of Q3-2021 or the beginning of Q4-2021.
In the second tranche, which is scheduled in October 2022, Rovio will buy 50% of Ruby’s outstanding shares for a sum not exceeding $80 million. This money would be dependent on Ruby’s financial performance based on the revenue and EBITDA over the previous 12-month timeline before October 2022. It has also been revealed that the second tranche would be paid 60% in cash along with 40% in Rovio’s shares.
Reportedly, the remaining 30% of Ruby’s outstanding shares would be bought in five equal tranches during the next five years through a minimum of 50% in cash, and the rest in cash or shares for a valuation in line with Ruby’s financial performance, not surpassing the total EBITDA generated in this period.
The CEO of Rovio Entertainment, Alex Pelletier-Normand, has stated that the acquisition will support the firm in taking a crucial forward step in rapidly growing its hyper-casual market, whilst enriching its audience base and providing a diverse portfolio of titles to players.
According to the CEO of Ruby Games, Mert Can Kurum, the acquisition would create a new chapter for the company, as Rovio’s long history as well as expertise in free-to-play games would assist the team in reaching higher levels.
For the record, Ruby Games has been consistently developing and introducing new hyper-casual games. Reportedly, four new games were rolled out in 2020 and three new games have been launched so far in 2021.