MTG Acquires Plarium: Investor Presentation

Key insights

6 takeaways

01
Modern Times Group is acquiring mobile developer Plarium for $620 million, with the transaction expected to close in Q1 2025.See it on page 3
02
The deal is valued at an enterprise value to adjusted EBITDA multiple of less than 4.5x and is projected to double the company's adjusted EBITDA and free cash flow.See it on page 33
03
Plarium’s flagship RPG, RAID: Shadow Legends, serves as the core asset, having generated $2.3 billion in lifetime revenue.See it on page 12
04
The acquisition is financed through a mix of cash and $460 million in debt, maintaining a moderate leverage ratio to allow for future M&A activity.See it on page 35
05
The integration provides Modern Times Group with Plarium’s proprietary direct-to-consumer distribution platform and advanced marketing infrastructure to support cross-platform expansion.See it on page 28
06
This strategic move aims to establish the combined entity as a top-10 mobile gaming developer in the Western market while diversifying the portfolio to improve margin resilience.See it on page 20

Summary

Modern Times Group is acquiring mobile game developer Plarium for $620 million, a strategic move designed to establish the combined entity as a top-10 mobile gaming developer in the Western market. Scheduled to close in the first quarter of 2025, the transaction is structured to be highly accretive, effectively doubling key financial metrics including adjusted EBITDA and free cash flow. The purchase is financed through a combination of cash and $460 million in debt, resulting in an attractive valuation with an estimated enterprise value to adjusted EBITDA multiple of less than 4.5x.

The acquisition centers on Plarium’s portfolio of evergreen intellectual properties, most notably the flagship RPG RAID: Shadow Legends, which has achieved $2.3 billion in lifetime revenue. Beyond the immediate revenue contribution, Plarium brings a proprietary direct-to-consumer distribution platform and advanced marketing infrastructure. Integrating these technological assets into the broader corporate ecosystem provides a scalable foundation for future organic growth and cross-platform expansion, while simultaneously enhancing operational efficiencies through shared marketing and development resources.

This consolidation strengthens the company’s competitive standing by diversifying its gaming portfolio and improving overall margin resilience. Despite broader industry volatility, Plarium has demonstrated consistent revenue stability and strong cohort retention, which serves to bolster the combined group’s financial profile. By maintaining a moderate leverage ratio post-acquisition, the organization remains well-positioned to pursue further value-accretive mergers and acquisitions while continuing to invest in its core mobile gaming operations.