Small Giant Games was acquired by Zynga for $700M.

Finland Secondary 21 December 2018
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Small Giant Games, a Helsinki, Finland-based mobile game studio, announced that it was acquired by Zynga for $700M.

Zynga will acquire 80% of Small Giant for $560 million, comprised of approximately $330 million in cash and $230 million of unregistered Zynga common stock. The final upfront transaction consideration will also include customary closing adjustments and will be partially funded by a newly established $200 million revolving credit facility.

The transaction is expected to close effective as of January 1, 2019 and Zynga will purchase the remaining 20% of Small Giant over the next three years at valuations based on specified profitability goals.

Small Giant, founded in 2013 and led by CEO Timo Soininen, is a mobile gaming studio known for the development of the hit franchise Empires & Puzzles. The game successfully blends approachable Match-3 battles with deeper gameplay elements including Hero Collection, Base Building and Social Alliances.

Since its launch in 2016, Empires & Puzzles has repeatedly broken into the Top 10 Grossing Games on the Google Play Store and Apple App Store. The game has been downloaded over 26 million times and expands Zynga’s international and Android audiences.

Small Giant Games reported $33 million of revenue for Empires & Puzzles, its most popular game, 10 months after its launch in 2017. Small Giant, which is also behind Alliance Wars and Season 2: Atlantis, says they exceeded 2017’s revenue just four months into 2018.

The company has raised more than $50M though it should be noted that most of the money was part of a $41M secondary transaction through which a few Nordic investors, including EQT Ventures, Spintop Ventures, Creandum and PROFounders, bought equity from the founders and early employees.

Prior to that round, the company had raised almost $10M from investors, in March 2017 of €5.4M ($5.7M) and almost $4M in two tranches in 2014 and in 2013.