Huuuge Games, a global developer and publisher of free-to-play mobile games, acquired the hit game Traffic Puzzle from Picadilla Games, a Poland, Wrocław-based gaming studio.
The total consideration of this transaction was $38.9m USD.
The acquisition marks the first milestone for the company’s M&A and Build & Buy strategy, as Huuuge expands its reach into the high-growth casual games segment and accelerate its revenue diversification initiative.
In 2021, the company focuses on improving its monetization metrics within existing games, new product development and scaling of new franchises, improving profitability and EBITDA delivery and, as said above, expanding the business through M&A.
The genre of puzzle games – , to which Traffic Puzzle belongs – is the largest category within the casual segment, accounting for 56% of casual game revenue in 2020. Alongside social casino games, the category is a primary focus for the company’s product line-up.
Following the close of the deal, the company will accelerate the growth of Traffic Puzzle through its capabilities, F2P know-how and technology. Huuuge anticipated that the positive financial contributions of the game as a result of the acquisition will be most visible in 2022 and beyond.
In Traffic Puzzle, the player attempts to clear a blocked road by matching three cars of the same colour. The game offers various levels, in which players help police cars, fire engines and ambulances reach their destination, assist helicopters and trains in breaking through blockades, and otherwise ensure the smooth flow of traffic.
Launched in May 2019 and available on the Apple App Store, Google Play and Amazon Appstore platforms, the game employs a Free-to-play business model and revenues are mainly generated through in app purchases.
Its daily active user (DAU) count doubled in 2020 relative to 2019 and its revenues tripled in the same period. The average daily revenue of Traffic Puzzle grew from approximately USD $12,900 in September 2020 to approximately USD $100,000 a day at the time of signing.
Led by Anton Gauffin, founder and CEO, Huuuge offers free-to-play games, such as Huuuge Casino, Billionaire Casino, Stars Slots, Trolls Pop, Coffee Break Games, and Luna’s Quest, which provide entertainment every month to nearly 5 million players from 195 countries and are available in 17 languages.
The company, whose shares have been listed on the Warsaw Stock Exchange since February 2021, employs over 600 people at 10 offices around the world.
The company conducted it initial public offering worth about USD 442m, raising proceeds from the issue of new shares of approximately USD 100m (gross proceeds, less issuance costs and funds used for stabilization of the share price), which will be used for implementation of the company’s strategy, primarily acquisitions.
In 2020, Huuuge generated record-high revenue of USD 332.7m, an increase of 28.3% year-on-year. Revenue in 4Q 2020 also set a historic record, at USD 89.2m (+23.7% yoy).