Dragonplay Snapped up by Bally Technologies
In breaking news from Sin City, Bally Technologies announced that it has concluded a buyout of Israeli software giant Dragonplay. The deal was worth an estimated $100 million in cash and stock options. Bally Technologies is now headed by Dick Haddrill – the recently appointed Chief Executive Officer of the company. The details of the deal remain under wraps, but the deal is expected to be finalized by July 2014.
About Dragonplay
The Israeli-owned Dragonplay enjoys the patronage of an estimated 700,000 players. It was established back in 2010 and provides players with a wide range of games including slots games, bingo games and poker games. The technology is such that players do not actually gamble; they spend money to play their favourite games – in a similar fashion to DoubleDown Interactive. Back in 2012, IGT (International Game Technology) – Bally Interactive’s rival – purchased DoubleDown for a staggering $500 million.
A big part of the reason why Bally Technologies purchased Dragonplay is its dominant position vis-à-vis revenue generation from the mobile gaming market. Dragonplay successfully leads the way when it comes to mobile gaming tech – especially smartphones and tablets. Bally CEO Dick Haddrill is impressed with the foresight and leadership ability of this social gaming giant. Haddrill recently re-assumed the leadership of Bally Technologies after being replaced by Ramesh Srinivasan in 2012. He was appointed as CEO on the 23rd May 2014.
Dragonplay has been listed among the Top 10 game developers in the world. It is noted as a frontrunner in the online gaming industry, especially in social gaming. There are an estimated 3 million MAU (monthly active users) across its entire platform. From Google Play, Dragonplay’s Live Holdem Pro is the #1 poker game. Additionally, in the casino category, the Dragonplay Slots are ranked as a top 10 performer in terms of total number of active daily users. Dragonplay has been able to successfully monetize all manner of social games across multiple platforms. The level of player retention is especially notable.
Both CEOs Pleased with the Deal
Haddrill is confident that the acquisition of Dragonplay will boost Bally’s presence in the highly lucrative social gaming sphere. With so many proprietary games on offer, Bally Technologies is looking to boost its online presence and draw in ever-increasing numbers of online casino players. The payment terms include a cash amount of $51 million and net working capital which will be paid to Dragonplay shareholders for all their equity. The other $49 million will be comprised of employee retention payments over 1.5 years (with financial performance targets in mind). Dragonplay CEO Sharon Tal is pleased with the deal and expects lots of ongoing collaboration between the two companies.
