DoubleU Games – a leading developer of social casino games – announced it has agreed to buy Turkish gaming studio Paxie Games, which is the developer of Merge Studio: Fashion Makeover. DoubleU Games will buy a 60% stake for $27 million at closing, with the remaining 40% to be acquired over three years, subject to achieving certain financial targets, resulting in full ownership by the end of the third year.
This acquisition of Paxie Games marks DoubleU Games’ strategic entrance into the rapidly growing Merge-2 market. The deal is expected to add meaningful growth and synergy to DoubleU Games, with Paxie Games achieving significant cumulative downloads and revenue and consistently ranking in the Top 5 within the Merge-2-genre (Sensor Tower). This acquisition will also mark the first time that DoubleU Games’ acclaimed titles are playable in Korea – a significant milestone for DoubleU Games, which currently derives 100% of its revenue from the international market.
This acquisition will be financed through a combination of treasury shares and cash. The deal is expected to close in Q1’25.
Arma Capital, an Istanbul-based M&A advisory firm, provided financial advisory services to DoubleU Games in this deal. And legal advisory services were provided by BASEAK for DoubleU Games.
KEY QUOTES:
“We believe the acquisition of Paxie Games represents a significant move to secure an expanded portfolio of new mobile gaming titles, driving growth and unlocking new opportunities.”
“We recognize Paxie Games’ competitive edge lies in users’ extended playtime with intuitive gameplay, instant rewards and seamless integration between meta and core game mechanics. Additionally, its operational capabilities are enhanced by execution of diverse and creative LiveOps events.”
“We are thrilled about the incredible opportunities ahead for our company. Merge Studio, our rapidly scaling hit game, is only the beginning. Through our full-scale collaboration with DoubleU Games, we are set to achieve even greater growth by expanding our portfolio with exciting new games, reaching a broader audience, and further growing our business.”
- Jay Choi, Chief Financial Officer
“By leveraging DoubleU Games’ established marketing network in the U.S., we plan to drive substantial growth and expand our reach. Together, the combined expertise of Paxie Games in game development and DoubleU Games’ financial strength will pave the way for mutual success and groundbreaking innovation in the gaming industry.”
- Direnç Çelik, CEO of Paxie Games
