DoubleDown Interactive, a social gaming company, announced an all-cash agreement to purchase SuprNation AB, an online casino gaming corporation.
First Post-IPO Acquisition
SurpNation, a Swedish-based iGaming company, will cost DoubleDown Interactive €33 million ($35.4 million) in cash and debt-free terms, subject to a final 2022 financial review.
DoubleDown Interactive CEO Keuk Kim was thrilled to announce the company’s first acquisition since its IPO, noting that SurpNation’s business complements DoubleDown’s “existing social casino franchise” while also providing exposure to new regions with growth potential.
SuprNation’s acquisition expands our foothold in the European iGaming sector, with additional geographies planned to be added over time.
SuprNation’s “gaming titles and fascinating gamification features have [already] generated a dedicated customer base that DoubleDown will want to increase further by “grabbing synergy opportunities” in the online gaming market, according to Kim.
“As we assess inorganic growth prospects, we will continue to prioritise gaming industries that have demonstrable synergies with our existing strengths,” Kim said.
Leverage Marketing and Operational Synergies
Using SuprNation’s European presence and licenses from the UK, Isle of Man, Sweden, and Malta, as well as its established relationships with acquisition channels, DoubleDown expects to leverage synergies in the areas of marketing, technology, and gaming content, as well as back office in-sourcing and app development. This will be accomplished by utilizing SuprNation’s European presence and licenses.
The co-chief executive officers of Surpnation, Joakim Stockman and Henric Andersson, expressed their enthusiasm about Surpnation “being a part of DoubleDown” while also expressing their anticipation about “looking forward to utilizing the assets of both firms in the years to come.”
SuprNation’s unaudited preliminary review for the year-to-date ended September 30, 2022, showed revenue of approximately $18.3 million. Its flagship title, Duelz, features peer-to-peer gamification and social features in a real-money gaming environment that can be used for engagement and monetization. SuprNation’s fiscal year ended on September 30, 2022.
We anticipate that, now that we are a part of DoubleDown, we will be able to accelerate our expansion and grow our real money gaming presence through creating distinctive goods and implementing effective marketing methods.
After the all-cash acquisition of SuprNation, which is expected to take place in the second business quarter of 2023 (subject to satisfaction or waiver of certain customary closing conditions), SuprNation will become a wholly-owned subsidiary of DoubleDown Interactive LLC, which is DoubleDown’s US wholly-owned subsidiary. This is subject to satisfaction or waiver of certain customary closing conditions.
Within nine months of the agreement’s execution, any party may request the termination of the Share Purchase Agreement if the closing requirements are not satisfied or waived. This request must be made in writing.