Gaming giant Zynga will buy Turkish developer Peak for $1.8 billion in its biggest ever acquisition

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Gaming giant Zynga will buy Turkish developer Peak for $1.8 billion in its biggest ever acquisition
Zynga executive chairman Mark Pincus.AP Photo/Paul Sakuma
  • US casual gaming giant Zynga is buying Turkish mobile game developer Peak for $1.8 billion, the company confirmed Monday.
  • The cash-and-share deal will see Peak's 100-strong team and its portfolio of mobile game franchises join Zynga.
  • Zynga name checked two titles: "Toon Blast" and "Toy Blast" which have consistently ranked in the top 20 grossing iPhone games in the US over the last two years.
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Casual gaming firm Zynga will buy Turkish mobile game developer Peak for $1.8 billion in a cash-and-share deal, the firm announced Monday.

The deal brings Peak's 100-strong team plus two successful puzzle games, "Toon Blast" and "Toy Blast," to Zynga's roster. Zynga stated in its announcement that the two game franchises have consistently ranked in the top 10 or 20 grossing games on the App Store over the past two years.

Zynga stated that the deal comprised $900 million in cash, and $900 million in Zynga stock, with the acquisition expected to close in the third quarter of 2020. The company said the acquisition will boost its margins and round out its games offering.

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The deal comes as Zynga experiences a financial boost thanks to the coronavirus pandemic. The company said it had experienced its best first-quarter earnings in its history at the end of March, reporting that revenue was up 52% year on year to $404 million. The firm raised its full-year 2020 guidance to $1.7 billion in revenue. The company's stock price has also climbed, hitting a 2020 high of $9.15 at close on Friday.

Zynga expects the acquisition to bolster its average mobile daily active users by more than 60%, with Peak's two games collectively averaging 12 million daily users.

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Frank Gibeau, chief executive of Zynga, said in a statement: "Peak is one of the world's best puzzle game makers and we could not be more excited to add such creative and passionate talent to our company."

Peak CEO Sidar Sachin said in a statement: "This is a monumental partnership not only for Zynga and Peak, but for the whole mobile gaming industry."

"Both companies share a common vision — to bring people together through games. Peak's culture is rooted in relentless learning and progress, so as we embark on this new chapter in our journey together with Zynga, we remain as committed as ever to our unique culture. We're very excited for our combined future and what we will accomplish together," added Sachin.

Read the original article on Business Insider
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