Netflix, Inc. (NFLX) announced Wednesday that it has entered into a combination agreement to acquire Finnish mobile game maker Next Games Oyj for a total equity value of around 65 million euros. Next Games shares were gaining more than 118 percent in the early morning trading in Helsinki.
Under the deal terms, Netflix will commence a tender offer to acquire all shares of Next Games. Pursuant to the offer, Next Games shareholders will receive 2.1 euros in cash per share.
The transaction is expected to close in the second quarter of 2022, subject to customary closing conditions.
The Board of Directors of Next Games has unanimously decided to recommend that the shareholders accept the tender offer.
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Next Games, founded in 2013, creates and operates engaging mobile games. The company’s strategy is to develop games based on popular entertainment IP. The company had approximately 120 employees at the end of 2021 and reported sales of approximately 27.2 million euros in 2020, with 95% of revenues generated from in-game purchases.
Michael Verdu, Vice President of Games, Netflix, said, “We are excited for Next Games to join Netflix as a core studio in a strategic region and key talent market, expanding our internal game studio capabilities. While we’re just getting started in games, I am confident that together with Next Games we will be able to build a portfolio of world class games that will delight our members around the world.”
In Helsinki, Next Games shares were trading at 2.04 euros, up 118.58 percent.
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