Modern Times Group Acquires Plarium for $620 Million
Deal News | Nov 20, 2024 | Gernandt & Danielsson Advokatbyr
Modern Times Group (MTG), a prominent player in the digital entertainment sector, has announced its acquisition of Plarium, an international game development studio renowned for popular titles such as RAID: Shadow Legends. The acquisition deal is valued at USD 620 million and was facilitated by legal advisors Gernandt & Danielsson. Plarium, originally founded in Israel in 2009 and previously acquired by Aristocrat in 2017, employs approximately 1,300 personnel across locations in Israel, Poland, Ukraine, and Finland. The studio is notable for its highest-grossing game on the Google and Apple app stores, RAID: Shadow Legends. The transaction will primarily be financed through MTG's existing cash reserves and committed financing amounting to USD 460 million. The advisory team from Gernandt & Danielsson included partners Fredrik Palm, Oscar Anderson, and Mikael Bolling, with support from associates Alexander Thrnberg and Gustaf Hellberg.
Sectors
- Digital Entertainment
- Gaming
- Corporate Finance
- Legal Advisory
Geography
- Sweden – MTG, the acquiring company, is based in Sweden, making this geography significant for the transaction.
- Israel – Plarium, the acquired company, is headquartered in Israel, making this geography significant to the acquisition.
- Global – Plarium has operations in multiple countries including Poland, Ukraine, and Finland, indicating a wide geographical footprint.
Industry
- Digital Entertainment – This industry encompasses companies involved in the distribution and creation of digital content, including gaming, which is relevant given MTG's acquisition of Plarium.
- Gaming – A sub-sector of digital entertainment, focusing specifically on video game development and sales, which is directly relevant to Plarium as a game studio.
- Corporate Finance – This sector includes services relating to advising and financing corporate transactions, relevant due to the financial structuring of MTG's acquisition of Plarium.
- Legal Advisory – Involves legal counsel and services, pertinent as Gernandt & Danielsson provided legal advice for the acquisition.
Financials
- 620 million – The total consideration for MTG's acquisition of Plarium.
- 460 million – The amount of financing arranged through MTG's current cash on hand and committed financing.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Modern Times Group (MTG) | Acquiring Company | Company | A digital entertainment company pursuing strategic acquisitions to enhance its gaming portfolio. |
| Plarium | Target Company | Company | An international game development studio known for popular titles such as RAID: Shadow Legends. |
| Aristocrat | Selling Company | Company | Current owner of Plarium, having acquired it in 2017. |
| Gernandt & Danielsson | Legal Advisor | Company | Provided legal advice for MTG's acquisition of Plarium. |
| Fredrik Palm | Partner | Person | Partner at Gernandt & Danielsson, involved in the advisory team for the acquisition. |
| Oscar Anderson | Partner | Person | Partner at Gernandt & Danielsson, involved in the advisory team for the acquisition. |
| Mikael Bolling | Partner (Financing) | Person | Partner at Gernandt & Danielsson, involved in financing aspects of the acquisition. |
| Alexander Thrnberg | Associate | Person | Associate at Gernandt & Danielsson, supporting the advisory team. |
| Gustaf Hellberg | Associate | Person | Associate at Gernandt & Danielsson, supporting the advisory team. |