NEXON Buys Gloops for $469M

Publicly traded Korean game developer NEXON Co., which makes free-to-play online games, has acquired Tokyo-based mobile gaming company gloops Inc. for approximately $469 million. The transaction closed Monday.



NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online games, today announced that it has entered into a definitive agreement to acquire all outstanding common shares of gloops, Inc. (“gloops”), a leading developer of mobile games for DeNA’s Mobage platform in Japan, for JPY 36.5 billion in cash.


Based in Tokyo, gloops is one of the leading developers in the large Japanese mobile games market. Since launching its first game on the Mobage platform in early 2010, the company has experienced rapid growth through successive launches of innovative hit titles. gloops offers a diverse portfolio of top-ranking games, from social card battle games such as Japan Pro Baseball Card Battle to more core titles such as Warriors of Odin and Three Kingdoms Guild Battle, which have successfully borrowed elements from PC online games by incorporating real-time synchronous game-play.


Through its recently announced alliance with DeNA, gloops is also expanding internationally, delivering five titles in 2012 and another five in 2013 to the Mobage platform targeting North America and Europe, and one title each on Mobage’s platforms in China and Korea. Under the alliance, DeNA will provide user acquisition and international distribution capabilities. By working closely with DeNA’s international network to leverage Mobage’s footprint in these markets, Nexon and gloops will be able to bring captivating and borderless games to mobile users worldwide.


“This acquisition significantly accelerates Nexon’s mobile strategy, giving us immediate exposure to Japan’s large and fast growing mobile market,” said Seungwoo Choi, President and Chief Executive Officer of Nexon Co., Ltd. “gloops has established itself as one of the premier mobile game developers in the world and a key player in one of our most important growth areas, with a robust portfolio of hit titles and a strong track record of driving market innovation. We look forward to leveraging gloops’ outstanding capabilities and scale to expand the Nexon game experience to users on mobile platforms worldwide.”


“We are thrilled to become a part of the Nexon family,” said Shinsuke Kawakata, President of gloops. “Providing compelling games for mobile users has always been our passion, and we look forward to being a part of an even larger organization as we work to continue bringing new and exciting titles to a growing base of players around the world.”


The transaction has been unanimously approved by the board of directors of each company. Nexon financed the acquisition through cash on hand, and the transaction closed on October 1, 2012. Advisory fees totaled JPY 16 million. Other terms of the transaction were not disclosed.


Nexon expects the transaction to be immediately accretive to its consolidated financial results, and will update its consolidated fiscal year 2012 financial outlook upon completion of the final accounting review of the transaction.