Operator Talk: Playtech completes ‘three-pronged’ casual games strategy with Yoyo Games deal

Operator Talk: Playtech completes ‘three-pronged’ casual games strategy with Yoyo Games deal

Tuesday, February 17, 2015

Playtech has told TotallyGaming.com about completing the latest stage of a 'three-pronged' casual games strategy by striking a $16.4m (€14.4m) deal to acquire cross-platform games specialist Yoyo Games. 

Under the deal, 30 per cent of the consideration will be held in escrow for up to 36 months while an earn-out consideration and a retention plan is expected to add a further $5.3m to the aggregate cost.

Headquartered in Dundee, Scotland, Yoyo Games is best known for the creation of Game Maker: Studio (GMS). The cross-platform casual games development technology enables developers to create games using a single programming code and publish them across most common platforms.

GMS has so far attracted more than 750,000 registered games developers. Each of these uses the platform on a freemium basis with chargeable add-ons.

“The acquisition of Yoyo is part of Playtech’s strategy to penetrate the casual gaming space, which already includes Plamee – an internal games development team employing more than 120 casual games developers with extensive knowledge and a proven track record in the development of casual games, which was established in early 2014,” a Playtech spokesperson told TotallyGaming.com. 

“Playtech’s directors believe that the continued development of Yoyo’s GMS technology within the company will enable it to extend beyond the current games developers base, and will fit well with its in-house casual team, extending its expertise and knowhow in the development of casual games, marketing systems and related infrastructure.

“This acquisition will enable Playtech to further diversify its business, benefiting from a combined B2B and B2C offering focused on a strong and growing segment of the wider gaming market.”

Expanding on the wider ramifications of the acquisition, the spokesperson said that the deal marks the final stage of a “three-pronged” strategy into the casual games market.

“The acquisition will complete a three-pronged strategy into the casual games market, including the company’s experienced in-house games development studio; publishing of both in-house and third-party games; and games technology, which includes Yoyo,” the spokesperson added.

“Playtech has developed social games for a number of years. However, at the moment we can’t say any more, particularly as Plamee is only a year old and Yoyo is a brand new acquisition.”

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