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Zynga To Buy Helsinki-based Small Giant Games

(RTTNews.com) - Zynga Inc. ( ZNGA ), Wednesday said it has agreed to acquire Helsinki-based mobile game studio Small Giant Games, in a stock and cash deal.

Zynga will acquire 80% of Small Giant for $560 million, comprised of about $330 million in cash and $230 million of unregistered Zynga common stock.

The deal is expected to close effective as of January 1, 2019 and Zynga will purchase the remaining 20% of Small Giant over the next three years.

Small Giant Games is the creator of the hit franchise Empires & Puzzles. Small Giant adds an experienced team and another innovative Forever Franchise to Zynga's live service portfolio while also expanding its new game pipeline.

Small Giant is expected to be accretive to Zynga's profitability and be a meaningful growth driver in 2019 and beyond.

"We've been impressed by the quality and momentum of Empires & Puzzles as we add another Forever Franchise into Zynga's portfolio," said Frank Gibeau, Zynga CEO. "Small Giant has created an innovative game that delivers a unique player experience that engages over the long term. We are excited that Small Giant is joining Zynga as they enhance our next phase of growth."

Moving ahead, Zynga raised its fourth quarter guidance based on the strong performance of holiday bold beats across its live service portfolio, in particular, Words With Friends, Merge Dragons! and CSR2.

Zynga now expects fourth-quarter revenues of $243 million, up from prior forecast of $235 million. Analysts currently estimate revenues of $251.92 million.

Read the original article on RTTNews (http://www.rttnews.com/2964760/zynga-to-buy-helsinki-based-small-giant-games.aspx)

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