South Korean game developer Netmarble acquires social casino SpinX

South Korean game developer Netmarble Corp has bought Hong Kong-based social casino game company SpinX Games for an estimated $2.19 billion.

The acquisition has been done through its holding company based in the Cayman Islands and announced on Monday. Lee Seung-Won, head of Netmarble, said: “On top of the mainstay role-playing game company, the company has diversified its portfolio by adding other casual gaming content.”

This strategy will strengthen Netmarble’s global business competitiveness, as reported in a regulatory filing.

SpinX Games operates mobile casino content, including slot machine games, and was established in 2014. The company offers apps such as “Cash Frenzy”, “Latcher Slot” and “Jackpot World”, and reported $285.99 million in revenue as of end-second quarter of this year. SpinX is currently servicing 7 games in more than 80 countries.

The new deal is expected to be completed in September and it follows Netmarble’s acquisition of US-based game developer Kabam Inc. in a deal estimated at $868 million in 2017, and the acquisition of a 25.1% stake in Coway last year.

Netmarble is expected to pay 80% of the transaction price first, and the remaining 20% in installments over four years.