Jam City, a leading mobile game company that has owned intellectual property and some of the top licensed games, is going public in a SPAC deal announced Thursday morning.
What Happened: The SPAC deal is with Dpcm Capital Inc XPOA. The deal values Jam City at $1.2 billion and includes the acquisition of mobile gaming company Ludia Inc.
Going public will help Jam City continue its growth strategy that includes more M&A and a pipeline of licensed games.
Jam City investor Netmarble will own a significant portion of the combined company upon closing.
The new company will trade with the ticker JAM on the NYSE. Current XPOA shareholders will own 24% of the new company after the merger is completed.
About Jam City: The new combined mobile gaming company will have a library of games including Harry Potter: Hogwarts Mystery, Cookie Jam, Panda Pop, Disney Emoji Blitz and Jurassic World Alive.
The company is diversified with no game accounting for 20% or more of bookings in 2020.
Jam City was a top 10 game publisher for iOS and Google Play in 2020. The company had 31 million monthly active users in 2020.
A total of 1.3 billion cumulative installs have been done on Jam City games through 2020. Consumers played the combined company’s games three billion hours in 2020 and saw over nine billion ad impressions.
Cookie Jam has lifetime bookings of $790 million and Panda Pop has lifetime bookings of $375 million.
Related Link: Electronic Arts Is Buying Glu Mobile In $2.4B Deal
Growth Ahead: The mobile gaming industry is expected to have 2.7 billion players globally and a revenue of $205 billion by 2023.
The company has a proven track record of successful and scalable acquisitions according to its presentation.
A pipeline of games includes Disney Pop Town with partner Walt Disney Co. DIS, a DC title with partner AT&T Inc T, an HGTV My Design game with partner Discovery Communications DISCA and games for the Star Wars and Avatar franchises.
Financials: The company had 1.1 million monthly paying users in 2020 with an average spend of $44.75.
Jam City had bookings of $570 million in 2020 and is forecasting bookings of $868 million and adjusted EBTIDA of $122 million for the combined company in fiscal 2022.
Compounded annual growth of 23% for bookings and 30% for adjusted EBITDA from 2019 to 2022 has been forecasted by the company.
Bookings growth of 23% comes in higher than rivals Zynga ZNGA, Glu Mobile and Playtika Holding Corp PLTK at rates of 19%, 12% and 9% respectively for the years 2019 to 2023.
The EV/Book rate of 1.4x for Jam City is also lower than its rivals.
DPCM Price Action: Shares of DPCM Capital Inc are down 0.15% at $9.85 at publication Thursday.
(Photo: Kes Sinanan via Pixabay)
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