MTG Purchases Mobile Gaming Studio Ninja Kiwi

Modern Times Group MTG AB (publ) (“MTG”) acquires New Zealand-based leading tower defense mobile games developer and publisher Ninja Kiwi Ltd (Ninja Kiwi). The acquisition of Ninja Kiwi marks an important additional step in the journey to reach further organic and acquisitive growth for MTG and is in line with the company’s overall strategy to further build a diversified gaming segment, and stronger GamingCo. The up-front consideration amounts to approximately SEK 1,217 million (NZD 203 million) and earn-out payments at an expected value of SEK 406 million (NZD 68 million) in aggregate, including cash and share components.

MTG has today entered into an agreement for the acquisition of the New Zealand-based mobile games developer Ninja Kiwi, which was first announced to be in negotiation on 14 January 2021. The acquisition of Ninja Kiwi marks an important next step in the build-up of a diversified gaming segment with high-quality gaming companies and is in line with MTG’s strategy to drive value creation through organic growth and strategic M&A.  After completing the acquisition, MTG holds strong positions in the city building and strategy genres through InnoGames, mobile racing through Hutch, idle games through Kongregate and tower defense through Ninja Kiwi.

Transaction highlights

  • Ninja Kiwi is a mobile and online video game developer founded in Auckland, New Zealand, in 2006 by brothers Chris and Stephen Harris
  • Ninja Kiwi has a diversified games portfolio consisting of over 25 premium and free-to-play games which the company has managed to innovate by building and improving games around the all-star IP Bloons
  • The company is a highly profitable market leader in the tower defense genre, with gross revenues in 2020 amounting to SEK 337 million (NZD 56 million) and an adjusted EBITDA of SEK 168 million (NZD 28 million). Revenues come from both purchases of the games, and in-game purchases.
  • Up-front consideration of approximately SEK 1,217 million (NZD 203 million), on a cash and debt-free basis, and earn-out payments at an expected value of approximately SEK 406 million (NZD 68 million) in aggregate. The earn-out payments and share components are structured to align MTG’s and Ninja Kiwi’s long-term economic incentives. The earn-out payments are based on Ninja Kiwi’s financial performance and will be paid over three years.
  • 56% of the up-front consideration will be paid in cash and 44% in newly issued MTG class B shares. MTG has earlier today announced its intention to carry out a private placement of Class B shares, the proceeds of which will be used to finance the cash portion of the consideration.

MTG’s Group President and CEO Maria Redin commented:

“Ninja Kiwi has popularized the entire genre of tower defense games and continues to pioneer it. Its evergreen Bloons IP and gaming platform have introduced millions to the tower defense genre, combining puzzle and strategy elements in games developed mainly for mobile platforms.”

”The strong organic traffic to Ninja Kiwi’s portfolio of games is hugely impressive, as is the company’s successful combination of paid and in-app purchase models in its pricing structure – both are testament to the quality of the titles that Ninja Kiwi has created. We’re very pleased that Ninja Kiwi is joining MTG and our growing gaming vertical, further broadening our offering through the introduction of a new genre,” she added

Ninja Kiwi’s Co-founders, Chief Executive Officer Chris Harris, and Chief Creative Officer Stephen Harris, commented:

“We are genuinely excited to join MTG. We have developed our relationship over a number of years and have often discussed the opportunities of working together.”

“By joining MTG we will gain access not just to resources to further develop our existing games and launch new ones, but also to the wealth of skills and know-how across the companies within MTG’s GamingCo that will allow us to deliver even better games to our longstanding community. We’re particularly excited about the timely opportunity to work with ESL Gaming as we are pleased to officially announce that Bloons TD Battles 2 will launch later this year,” they said.

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