Zynga acquires mobile gaming company Peak for $1.8 billion

Zynga acquires mobile gaming company Peak for $1.8 billion

Zynga will buy Istanbul-based game developer Peak for $ 1.8 billion, marking the largest acquisition in the history of the company.

In a press releaseZynga officials said the deal would be funded by $ 900 million in cash and $ 900 million in stocks. Zynga previously purchased Peak’s casual card game studio in 2017 for $ 100 million.

The agreement is the last sign from Zynga recurrence. After several precarious years after its IPO in 2011, the company reversed its fortune thanks to a combination of development of internal games and strategic acquisitions.

Peak is best known for mobile games such as Toon Blast and Toy Blast. The press release noted that Peak’s titles have been in the top 10 and top 20 of the most profitable games for the iPhone in the past two years. With 12 million active users a day, executives expect the deal will increase Zynga’s UADs by more than 60% while helping the company expand its international reach.

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In a post on the Peak website, founder Sidar Sahin said that he is extremely proud of the 100 employees in his company and what they have accomplished since its inception.

“Ten years ago, we embarked on an incredible journey to realize our dreams,” he wrote. “Touching the lives of millions of people with our technology was just one of those dreams. Today we are one of the largest companies in the global mobile gaming industry. Our games are played daily by million people in 193 countries. ”

Although the companies did not provide details on how Peak works, Zynga generally allowed the studios he buys to maintain some independence. In recent years, these transactions include the acquisition of Small giant games for $ 560 million, Gram Games for $ 250 million, and NaturalMotion for $ 527 million in addition to the previous agreement with Peak.

Investors appeared to applaud the deal, pushing Zynga’s shares up $ 0.65 per share, or 7.10% to $ 9.80 in pre-market trading. It also represents an increase from $ 2.86 per share five years ago.

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