MTG buys 16% more in German online games developer InnoGames

MTG announced it increased its ownership in InnoGames, the developer of browser and mobile games, to 51%, from the initial 36%% investment in Hamburg-based InnoGames in October 2016.

InnoGames is the creator of six successful online games including ‘Forge of Empires’, ‘Tribal Wars’ and ‘Elvenar’.

MTG has invested EUR 82.6 million for the additional shares, based on the same enterprise value of EUR 260 million for 100% of the business as for the original investment. MTG will fully consolidate InnoGames with effect from 1 May.

InnoGames generated 25% revenue growth to EUR 130 million in 2016 with an EBITDA margin of approximately 20% and EBIT margin of approximately 16%

InnoGames has generated compound annual revenue growth of more than 20% over the past three years, and 25% growth in 2016 to EUR 130 million. The acceleration is being driven by the mobile gaming segment, with more than half of all new InnoGames user registrations being on mobile platforms, and several new mobile-only titles currently in development. InnoGames reported an EBITDA margin of approximately 20% and an EBIT margin of approximately 16% in 2016.

Jørgen Madsen Lindemann, MTG President and CEO:

“Revenues in the global gaming industry are expected to reach USD 113 billion by 2018, and mobile and PC games represent 45% of this and are the fastest growing segment. InnoGames is a great business with great products, and is already performing above our expectations when we made our original investment. We have got to know the talented InnoGames team very well over the past six months and are impressed with the strategy, culture, performance and management of the business.”

Hendrik Klindworth, InnoGames CEO:

“The next chapter of the InnoGames story starts today. We established InnoGames to make great games that people want to play for decades, and we have already created six games played by millions of gamers every single day. With MTG on board, we will keep our entrepreneurial spirit and unique culture, while bringing our new games to an even bigger global audience.”