Bally Technologies, the online casino and technologies provider, has acquired the social gaming company Dragonplay after finalizing the agreement between the two. Bally will have to pay around $51 million upfront for the company as well as the net working capital which has to be paid to the shareholders of Dragonplay in exchange for the equity.
The deal also includes a $49 million earn-out consideration as well as employee retention payments, which will be paid over the next 18 months should Dragonplay reach certain financial targets. Bally will be funding it through their capital and will fund the future through evolving cash flow.
“We expect this strategic acquisition to help position Bally at the forefront of social casino gaming by leveraging our world-class content, including proprietary table games and award-winning video slots, on Dragonplay's increasingly popular social casino,” Richard Haddrill, CEO of Bally said.
“Additionally, with the majority of its revenues generated from smartphones and tablets, Dragonplay has proven remarkable foresight and leadership in the mobile space, which is the fastest growing segment of social gaming.” He added.
“Both companies are committed to providing unique and stimulating content to players across the globe that enjoy playing entertaining casino-style games. I am confident that leveraging Bally's vast library of proven slot and proprietary table game content will provide our loyal player base with an even more robust experience, which is expected to augment Dragonplay's growth trajectory.” CEO of Dragonplay, Sharon Tal said.