Mobile games company Voodoo acquires Beach Bum – TechCrunch

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French startup Voodoo made a significant acquisition in the casual mobile gaming market. The company acquires beach ass, an Israel-based games studio specializing in board and card games.

It is difficult to get a clear figure for this acquisition as Voodoo offers both cash and stocks and there are retention bonuses. According to a source, Voodoo could shell out a few hundred million dollars in total. Beach Bum has generated $ 70 million in revenue over the past 12 months, which gives you an idea of ​​the size of the deal.

Voodoo is best known for its hyper-casual games, like Helix Jump, Crowd City, Hole.io or Paper.io 2. The company is both a game developer and publisher. It’s partnering up with other game studios and has built a tech stack to optimize distribution, average revenue per user and more.

The company has raised funds from Tencent and Goldman Sachs. More recently, Groupe Bruxelles Lambert invested 266 million euros ($ 309 million at the current exchange rate) in Voodoo. He values ​​the company at 1.7 billion euros (nearly $ 2 billion).

Voodoo wasted no time and started looking for acquisition targets for external growth opportunities just after raising new capital. Currently, 350 people work for Voodoo. Beach Bum has 150 employees who will join Voodoo.

With today’s acquisition, Voodoo is expanding into a new segment, adding a handful of casual games to its hyper-casual catalog. Beach Bum currently offers three games in the App Store: Backgammon (Lord of the Board), Spades Royale and Gin Rummy Stars.

The business model is also a little different. Historically, Voodoo has relied primarily on advertising to monetize its games. Beach Bum focuses more on in-app purchases. In this way, the acquisition diversifies Voodoo’s sources of income.

“[Beach Bum] has two other games in development at the moment. Voodoo’s intention is to use Beach Bum as an entry into in-app purchases. So I think they’ll want Beach Bum to have as many games as possible, ”Gigi Levy-Weiss told me.

Gigi Levy-Weiss is a general partner at VC firm NFX and co-founded Beach Bum in 2015. He currently has no operational role in the games company, but is the active chairman of the board.

“The Israeli gaming industry has grown tremendously in recent years. It currently has 400 different companies. Few releases have taken place, mainly by European and Asian buyers. A few months ago, an Israeli gaming company Playtika Nasdaq IPO at a valuation of $ 11 billion, ”Avihai Michaeli, a Tel Aviv-based senior investment banker, told me.


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