Social gaming company DoubleDown Interactive announced it has entered into an agreement to acquire online casino gaming firm SuprNation AB in an all-cash deal.
First Post-IPO Acquisition The acquisition of Swedish-based iGaming company SurpNation will cost DoubleDown Interactive €33 million ($35.4 million) on a cash-free and debt-free basis and will be subject to a final 2022 financial review.
Keuk Kim, chief executive officer of DoubleDown Interactive, was pleased to announce the company’s first acquisition since its IPO, pointing out that SurpNation’s business complements DoubleDown’s “existing social casino franchise” while also providing exposure to new markets which offer growth opportunities.
The acquisition of SuprNation increases our presence in the European iGaming market with other geographies expected to be added over time.
Keuk Kim, CEO, DoubleDown Interactive Kim outlined that SuprNation’s “gaming titles and captivating gamification features have [already] created a loyal customer base that DoubleDown would look to grow further by “capturing synergy opportunities” in the online gaming space.
“As we evaluate inorganic growth opportunities, we will continue to focus on gaming businesses that offer clear synergies with our existing strengths,” Kim concluded.
Leverage Marketing and Operational Synergies DoubleDown is expecting to leverage synergies through marketing, technology and gaming content, as well as back office in-sourcing and app development, utilizing SuprNation’s European presence and licenses from the UK, Isle of Man, Sweden, and Malta, as well as its established relationships with acquisition channels.
On behalf of Surpnation, co-chief executive officers Joakim Stockman and Henric Andersson outlined their excitement “to become a part of DoubleDown” while “looking forward to leveraging the strengths of both companies in the years to come.”
SuprNation’s unaudited preliminary review for the year-to-date ended September 30, 2022, showed revenue of approximately $18.3 million, and its flagship title, Duelz, features peer-to-peer gamification and social features in a real-money gaming environment that can be used for engagement and monetization.
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.
Stockman and Andersson Subject to satisfaction or waiver of certain customary closing conditions, the all-cash acquisition of SuprNation is expected to close in the second business quarter of 2023, and upon closing, SuprNation will become a wholly-owned subsidiary of DoubleDown Interactive LLC, DoubleDown’s US wholly-owned subsidiary.
The Share Purchase Agreement can be terminated by either of the sides if closing conditions are not met or waived within nine months after the execution of the agreement.