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Modern Times Group (MTG) Completes Full Acquisition of PlaySimple

In a year of significant achievements for Modern Times Group (MTG), the company has now finalized its full acquisition of PlaySimple, an Indian word games developer. MTG, headquartered in Sweden, initially expanded its reach by acquiring PlaySimple in 2021, attracted by the latter's impressive 144% increase in revenue.

MTG had set out to obtain complete ownership of PlaySimple in the years following the initial acquisition, and this goal has now been realized. However, the transfer of Class B shares to PlaySimple founders, as per the original agreement, is still pending, with MTG currently holding them as Class C shares.

As part of an initiative to enhance shareholder value, MTG repurchased 176,970 of its own Class B shares between February 27 and March 3, 2023. This buyback program was announced in October the previous year and aimed to reacquire up to 4,618,818 of the previously sold shares.

MTG's Gaming Village continues to expand, encompassing companies such as Ninja Kiwi, Innogames, Kongregate, and, now, PlaySimple. Notably, each studio within the MTG portfolio maintains its individual identity. For example, Kongregate adopts a fully remote working model, while Ninja Kiwi follows a "Flexible Four O’clock" approach.

Adding to its success, Swedish mobile developer Snowpoint Studios has become part of the Gaming Village, with MTG now holding a 70% ownership stake. Snowpoint Studios brings games like the rapidly growing mid-core hit "Warhammer 40,000: Tacticus" to MTG's gaming portfolio.

Overall, MTG is experiencing a successful year, with its Q3 performance surpassing expectations. This is particularly impressive as Q3 is traditionally considered a seasonally weaker quarter. The company achieved a record-breaking 30% margin on its adjusted EBITDA, driven by the contributions of PlaySimple and Ninja Kiwi. Most of MTG's studios reported sales growth on a sequential basis.

Maria Redin, President and CEO of MTG, remarked, "The year-over-year growth was driven by PlaySimple and Ninja Kiwi, while nearly all our studios grew their sales on a sequential basis." MTG's strategic acquisitions and ongoing success mark it as a prominent player in the gaming industry.

Source: adapted from an article by Aaron Astle, News Editor for Pocket Gamer

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