MGM-Backed Playstudios Agrees to $1.1 Billion SPAC Deal
Casual and social casino developer-publisher PlayStudios is to list publicly on the Nasdaq stock exchange at a valuation of approximately USD$1.1bn (£803m), via a merger with the Acies Acquisition Corp. Special purpose acquisition company (SPAC).
Under the terms of the merger, Las Vegas-based PlayStudios will receive a maximum of USD$150m (£109m) in cash and 89.1 million Acies shares, alongside a USD$250m (£182m) PIPE injection funded by BlackRock; ClearBridge Investments; Neuberger Berman Funds; and MGM Resorts International. Following the merger, which is expected to close in Q2, PlayStudios will have a cash and public equity currency figure of USD$290m (£212m) for product development and game company acquisitions.
Andrew Pascal, Founder, Chairman, and CEO of PlayStudios, commented, “From our inception, we set out to create wonderfully compelling games that were free-to-play and offered real-world rewards. We’ve now demonstrated the positive, long-term impact of this value proposition with our current portfolio of apps, and we’re poised to carry that success into new products and new game genres. Becoming a public company and securing the resources and support of key institutional investors will enable us to accelerate our growth as we launch new products, pursue new acquisition opportunities, and scale up our unique playAWARDS loyalty program.”