Mobcast acquires online game developer Enter Crews for US$7M
Social gaming platform Mobcast acquires online gaming developer Enter Crews for US$7 million in order to expand into Asia.By Joash Wee 08 Jan, 2013
On 7th January, social gaming company Mobcast announced its acquisition of online gaming developer, Enter Crews for US$7 million. The acquisition is an all-stock deal that will take effect on 1st February.
The arrangement of the deal will see all common stock exchanged at a rate of 1 (Enter Crews): 11.88 (Mobcast) shares. Preferred stock will be exchanged at 1 (Enter Crews): 41.72 (Mobcast). Mobcast will be issuing 279,404 new shares as part of the deal.
Enter Crews was founded in September 2009 and has offices in Japan, South Korea and Indonesia. B Dash Fund 1 Investment Limitted Partnership is the primary shareholder of Enter Crews. The game developer has popular titles such as Sangokushi Masters and Browser Ginga Taisen. Their users grew to about 300,000 in Japan and 170,000 in South Korea in just six months. Enter Crews has over 50 employees with about 70 percent of them coming from foreign countries such as South Korea, China, Indonesia, Canada and the United Kingdoms.
With its acquisition of Enter Crews, Mobcast will be looking to continue its expansion plans as mentioned in their 2012 third quarter earnings announcement. According to the company spokesperson, the first focus would be on the South Korean market with the aim of growing it to match its current Japanese market. This will be made more efficient with the acquisition of Enter Crews, as the company has seen rapid growth in South Korea and has software development infrastructure already in place. Mobcast will be pushing its sports games and will also look to eventually expand into the rest of Asia.
Despite being in a same space as larger competitors such as GREE and Mobage, which have passed the US$1 billion revenue mark, mobile platforms such as Mobcast and location-based platform COLOPL are making their mark as platforms to look out for.
Mobcast is a mobile gaming platform listed on the Tokyo Stock Exchange’s Mothers market (“Market of the High-Growth and Emerging Stocks”). The company mainly offers sports titles on its MobApro platform. In its 2012 third quarter report, Mobcast announced that it currently has 2.7 million users as of October 2012. Its revenues has grown from US$23 million in 2011 to US$40 million in 2012.
Source(s): Startup Dating
Image Credits: Enter Crews