Acquisition of Moonfrog

Stillfront Group AB outlines the strategic acquisition of Moonfrog Labs Private Limited, an India-based mobile gaming company, to expand its footprint in the rapidly growing Indian subcontinent. The transaction serves as a bridgehead for Stillfront to enter this high-growth market, leveraging Moonfrog’s expertise in organic player acquisition, proprietary technology, and established local distribution networks. By integrating Moonfrog, Stillfront aims to diversify its revenue streams, incorporate new free-to-play titles, and utilize Moonfrog’s operational capabilities to scale other products within the region.

Moonfrog, founded in 2013, maintains a strong market position with approximately 9 million daily active users and a portfolio of top-tier titles, including Ludo Club and Teen Patti Gold. As of the third quarter of 2020, the company reported year-to-date net revenue of USD 21 million and an adjusted EBITDA of USD 12 million. The acquisition is structured in four tranches, with an initial purchase of 91% of shares for USD 90 million on a cash and debt-free basis, followed by three subsequent tranches based on future performance metrics.

The financial impact of the acquisition is reflected in preliminary, unaudited pro forma figures for the first nine months of 2020, which indicate a 7% increase in Stillfront’s net revenue. The combined group maintains a high profitability profile, characterized by efficient marketing spend and a robust, scalable organization. Stillfront intends to finance the transaction through existing cash reserves and credit facilities, maintaining a leverage ratio within its target of 1.5x EBITDA. This strategic move aligns with Stillfront’s broader financial objectives for 2021–2023, which emphasize continued organic and inorganic growth alongside a target adjusted EBIT margin of approximately 35%.