Gaming developer and publisher DoubleDown Interactive announced on Wednesday it has entered into a share purchase agreement to acquire Swedish iGaming tech company SuprNation AB for approximately $35 million, on a cash-free and debt-free basis and subject to a final 2022 financial review. The move expands the social gaming operator into real-money gaming.
This all-cash acquisition is expected to close during the second quarter of 2023, subject to the satisfaction or waiver of certain customary closing conditions, including regulatory approvals.
Following the closing, SuprNation will be a direct, wholly-owned subsidiary of DoubleDown Interactive. If the closing conditions are not satisfied or waived prior to nine months after the execution of the agreement, either party may issue a termination, DoubleDown noted.
The iGaming company is hailed as boasting a "strong presence in certain European markets," with gaming licenses possessed in jurisdictions such as the UK, Sweden, Malta, and the Isle of Man.
DoubleDown expects to realize "significant synergy opportunities” upon completion by leveraging marketing, technology, and gaming content, back office in-sourcing, and potential native Apple/Android app development.
According to a press release, SuprNation, whose online gaming roster includes Duelz, VoodooDreams, and NYspins, is reported to have produced unaudited preliminary revenue for the nine months ending September 30, 2022, of approximately $18.3 million.
Through this new deal, DoubleDown expects to "leverage its expertise in acquiring new users through performance marketing, improve existing services using its extensive software engineering and DevOps capabilities, and enhance existing services as well as develop new ones by leveraging its broad portfolio of casino game content."
In Keuk Kim, Chief Executive Officer of DoubleDown Interactive, said: "We are pleased to announce the first acquisition since DoubleDown's IPO that we believe complements our existing social casino franchise well and exposes DoubleDown to new growth markets. The acquisition of SuprNation increases our presence in the European iGaming market with other geographies expected to be added over time."
"Their gaming titles and captivating gamification features have created a loyal customer base that we aim to grow while capturing synergy opportunities, including incorporating our deep online gaming experience. As we evaluate inorganic growth opportunities, we will continue to focus on gaming businesses that offer clear synergies with our existing strengths," he added.
Joakim Stockman and Henric Andersson
Joakim Stockman and Henric Andersson, Co-CEOs of SuprNation, commented: "We are extremely excited to become a part of DoubleDown and are looking forward to leveraging the obvious strengths of both companies in the years to come."
"As part of DoubleDown, we expect to accelerate our expansion and grow our real money gaming foothold through continued development of unique products and efficient marketing strategies," the executives concluded.