MAG Interactive (publ) acquires Primetime
MAG Interactive has entered into an agreement to acquire the Swedish media company Sventertainment AB, the developer of the successful trivia app Primetime.
Stockholm, Sweden - 28 August 2020 - MAG Interactive announces today that the company will acquire all shares in Sventertainment AB, purchasing them for a sum of SEK 20 million, with an additional purchase sum corresponding to maximum SEK 80 million based on profit targets for the next three years. Payment is made in cash and is financed through existing cash and cash equivalents.
Sventertainment is a Swedish media company specializing in live-streamed entertainment. The company developed the successful trivia app Primetime, which broadcasts live trivia seven days a week.
“Primetime is an excellent addition to our catalog of smart, easily accessible word and trivia games and fits in particularly well with New QuizDuel. We want to create synergy between Primetime and MAG by integrating live broadcasts into New QuizDuel, making this the next strategic step toward becoming a world leader in trivia. With live broadcasting we will offer something completely new and exciting and are building unique added value for our QuizDuel players long-term. Primetime's complementary business model, that is based on sponsor financing, also amounts to an opportunity to increase ARPDAU in New QuizDuel”, says Daniel Hasselberg, CEO of MAG Interactive.
“Primetime has built an organic user base of around 100,000 daily active players. They have also proven that their business model works and the company is now profitable. During the first half of the year, they increased their sales significantly compared to the same period last year, and we believe that this is just the beginning of their growth journey”, Daniel Hasselberg continues.
Sventertainment will continue to act as an independent company and retain its current management. Primetime will remain a stand-alone product in the Nordic markets, and the cooperation between the companies will focus mainly on the integration of live broadcasts in New QuizDuel. MAG expects to increase revenue primarily by combining Primetime's live-streamed trivia content with the large user base from the QuizDuel franchise.
“We love trivia and knowledge-based games, so it feels completely natural for us and also a fantastic match from a company point of view with the new owner MAG”, says Daniel Weilar, Chairman of the board of Sventertainment.
“Together we can create something unique for players. MAG possesses expertise that will benefit us, and together we can make New QuizDuel into the world's biggest trivia game”, says Martin Palm, CEO of Sventertainment.
Primetime first launched in Sweden in 2018 and has since expanded to Norway, Denmark and Finland. Sventertainment had turnover of just over SEK 9 million during the first half of 2020 - an increase of 57% compared with the same period last year - in which it earned pre-tax profits totalling SEK 1.3 million. The acquisition is expected to have a positive effect for MAG on EBIT.
This is information that MAG Interactive AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 08:00 on August 28, 2020.