Bally Technologies Acquires Social Casino Company Dragonplay
There is a general consensus that free-to-play casino games are the casinos’ gateway into converting social gamers to real money gamblers. It comes as no surprise that almost on a daily basis there are gaming companies acquiring their very own social casino subsidiaries. Israel seems to be a powerhouse in the social casino world with Caesar’s Playtika leading the way. Another Tel-Aviv based social gaming company Dragonfly has just been acquired by Bally Technologies for a reported $100 million. In terns of the deal $51 m will be paid upfront in cash and the remaining $49 million in additional ear-out consideration and employee retention payments over the next 18 months, This will be conditional on specific financial performance targets reached by Dragonplay.
Dragonplay has a strong presence on both iOS and Android platforms as well as Facebook. Dragonplay have generated over $10 million for the 12 months ending March 31.2014. The acquisition of Dragonplay by Bally is expected to be closed in July 2014 and will be accretive to Bally’s fiscal 2015 adjusted earnings per share.
Dragonplay has over 700,000 Daily Active Users and is ranked amongst the top grossing social casino developers. Their Dragonplay’s poker game Live Hold’em Pro is the top grossing in the “Card” category on Google Play.
Bally’s Chief Executive Officer Richard Haddrill explained their reasoning for the acquisition,” With over three years of topping various performance charts on Google Play, Dragonplay has successfully and consistently demonstrated its ability to acquire, monetize and retain social gamers by creating compelling games with staying power in the social casino space.”
He went to to explain the benefits for Bally technologies,” 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. 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.”
Chief Executive of Dragonplay, Sharon Tal gave their side of the benefits of the acquisition,” Dragonplay and Bally share complementary cultures focused on innovation and user experience. 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.”