Stockholm-based digital entertainment company Modern Times Group (MTG) announced the successful closing of a deal signed in November 2024 to acquire 100% of Plarium, the company that created the game RAID: Shadow Legends and has hundreds of employees in Ukraine.
Stockholm-based digital entertainment company Modern Times Group (MTG) announced the successful closing of a deal signed in November 2024 to acquire 100% of Plarium, the company that created the game RAID: Shadow Legends and has hundreds of employees in Ukraine.
MTG will now begin working with Plarium and evaluate opportunities to accelerate productivity and future growth through the combined group’s intellectual property, technology, tools, and employees, the press release notes.
«This transformative deal will enable us to realize our ambition to become a leading European gaming group with one of the strongest portfolios of mid-tier evergreen IP in the world. The acquisition of Plarium is a key catalyst for our future growth,» said MTG President and CEO Maria Redin.
The agreement includes an upfront payment of $620 million, of which $20 million is deferred until 2026, to be offset by cash flows generated from the beginning of Q4 2024 through closing. The transaction is being financed with a combination of MTG’s current cash and fully secured and guaranteed financing totaling $460 million.
«We are excited to join MTG, a company that values Plarium’s success in the mid-core and casual gaming sector. Over the past year, we have returned to growth, setting new records and strengthening our industry leadership, which is a reflection of the exceptional talent of our team,» said Plarium CEO Shraga Mor.
It is noted that Plarium’s revenues increased year-over-year for both the full calendar year 2024 and the quarter ended December 31, 2024, and adjusted EBITDA also increased over the same period.
«Plarium has officially joined MTG! This is an exciting new stage that opens up new opportunities for innovation and growth for the company within a large gaming family. We are pleased to become part of Gaming Village and look forward to successful cooperation. Our goal remains the same — to create high-quality games that you love,» Plarium Ukraine commented on the agreement.
Plarium has three offices in Ukraine, where as of last fall, more than 700 employees worked.
Since May 2022, the studio’s staff in Ukraine has gradually decreased by almost 33%. In February 2024, it was reported that there were layoffs at Plarium. The reason was some unspecified changes at Pixel United, which includes Plarium. As a result, there were reductions in global product teams.
Recall that in 2022, Plarium liquidated its business in Russia and closed its office in Krasnodar. About 500 developers worked there, some of whom were laid off and some relocated to another country.
