Zynga, the social game developer, has announced it has entered into an agreement to acquire Helsinki-based mobile game studio, Small Giant Games, creator of the hit franchise Empires & Puzzles.
Small Giant adds an experienced team and another franchise to Zynga’s live service portfolio while also expanding its new game pipeline. Small Giant is expected to be accretive to Zynga’s profitability and be a meaningful growth driver in 2019 and beyond.
Founded in 2013, Small Giant is a mobile gaming studio based in Helsinki, Finland that developed the hit franchise Empires & Puzzles. The game successfully blends approachable Match-3 battles with deeper gameplay elements including Hero Collection, Base Building, and Social Alliances.
Since its launch 18 months ago, Empires & Puzzles has repeatedly broken into the Top 10 Grossing Games on the Google Play Store and Apple App Store. The game has been downloaded over 26 million times and expands Zynga’s international and Android audiences.
Zynga will acquire 80% of Small Giant for $560 million, comprised of approximately $330 million in cash and $230 million of unregistered Zynga stock. Zynga will purchase the remaining 20% of Small Giant over the next three years at valuations based on specified profitability goals.