Acquisition of Jawaker: Stillfront Group Presentation

Stillfront Group’s acquisition of Jawaker, a leading mobile gaming studio based in Abu Dhabi, serves to strengthen the company’s footprint in the Middle East and North Africa (MENA) region. The acquisition centers on integrating Jawaker’s highly profitable portfolio of classic board and card games into the Stillfront ecosystem. By leveraging a single-app model that hosts over 30 games, Jawaker has successfully cultivated a loyal user base characterized by high retention, strong cohort longevity, and significant organic growth.

Financial data from the first half of 2021 highlights the studio's robust performance, with net revenue of SEK 132 million and an adjusted EBIT of SEK 82 million, reflecting an impressive 62% adjusted EBIT margin. The transaction, valued at an upfront consideration of USD 205 million, is expected to enhance Stillfront’s pro forma net revenue and adjusted EBIT by 4.9% and 9.0%, respectively. The deal includes an earn-out structure tied to future EBIT targets through 2026, ensuring alignment between the studio’s ongoing performance and the parent company’s growth objectives.

The strategic rationale for the acquisition focuses on scaling potential and synergy. Stillfront intends to utilize its expertise in performance marketing and localization to expand Jawaker’s reach into Western markets and the Indian subcontinent. Furthermore, the integration allows for cross-promotion activities within the Stillfront ecosystem and knowledge sharing regarding reseller networks. By combining Jawaker’s regional expertise with Stillfront’s global infrastructure, the company aims to solidify its competitive advantage in the MENA region while diversifying its user base to include a broader demographic of Arabic-speaking players worldwide.