Acquisition of mobile games developer Pixonic
Mail.Ru Group Limited (LSE: MAIL, hereinafter referred as "the Company" or "the Group"), one of the largest Internet companies in the Russian-speaking Internet market, today announces the acquisition of 100% of mobile games developer Pixonic. The agreement was signed on 30 September 2016 with imminent completion in the next business days.
Pixonic was founded in 2009 and currently has over 100 employees. It is best known for War Robots which in September 2016 passed 20m installs just three months after its previous milestone of 15m installs. This is divided between 7m iOS players and 13m on Android. Daily users exceeds 500k. The games popularity is highest in the United States, Japan, China, Korea and Germany (in that order), with Russia placing 6th, having amassed 1.5 million installs.
The transaction is an all cash deal for $30m, with $20m upfront and $10m deferred and based on ongoing KPI’s.
In FY 2015 Pixonic had revenues of RUB 456m. In H1 2016 Pixonic had revenues of RUB 619m. In both periods Pixonic was broadly EBITDA neutral.
Mail.Ru Group will fully consolidate Pixonic from the beginning of Q4 2016 and will disclose all results on a pro-forma basis going forward to allow like for like comparison.
Commenting on the acquisition Mail.Ru Group Chairman and CEO (Russia), Dmitry Grishin said:
“We are very pleased to be adding one of the world’s most talented teams of mobile games developers. There is a clear strategic fit here and we look forward to working together to strengthen our international mobile games development and publishing and take the company’s games to even further success”
Commenting on the acquisition Pixonic CEO, Philipp Gladkov said:
“The Pixonic and Mail.Ru Group teams share a common vision for the development of mobile games in the global market and we look forward to joining our skills and expertise to increase the reach of War Robots and create future releases”.
Notes to announcement:
Pixonic's revenue and EBITDA numbers presented herein are prepared based on principles used for the segment financial information of the Company's consolidated operations, i.e. do not include certain adjustments which would be required under IFRS. The accounting principles used in segment financial reporting are described in more detail in the Company's prior announcements.
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This press release contains statements of expectation and other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "forecast", "intend", "will", "could", "may" or "might", the negative of such terms or other similar expressions including "outlook" or "guidance". The forward-looking statements in this release are based upon various assumptions that are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and may be beyond the Company's control. Actual results could differ materially from those discussed in the forward looking statements herein. Many factors could cause actual results to differ materially from those discussed in the forward looking statements included herein, including competition in the marketplace, changes in consumer preferences, the degree of Internet penetration and online advertising in Russia, concerns about data security, claims of intellectual property infringement, adverse media speculation, changes in political, social, legal or economic conditions in Russia, exchange rate fluctuations, and the Company's success in identifying and responding to these and other risks involved in its business, including those referenced under "Risk Factors" in the Company's public filings. The forward-looking statements contained herein speak only as of the date they were made, and the Company does not intend to amend or update these statements except to the extent required by law to reflect events and circumstances occurring after the date hereof.
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