LONDON: Zynga Inc, a global leader in interactive entertainment, has completed its previously announced acquisition of all of the issued and outstanding common shares of Peak Games, the Istanbul-based creator of Toon Blast and Toy Blast, for a total purchase price of approximately $1.85 billion, comprised of approximately equal proportions of cash and Zynga Inc common stock.
Draper Esprit expects to receive the cash portion of the transaction of approximately £39 million (net of escrow balances) in the coming days. The remaining consideration of shares in Zynga Inc are to be held subject to a further 6 months lock-up.
Draper Esprit is a leading venture capital firm investing in and developing high growth digital technology businesses.
On the basis of the current Zynga Inc share price the sale indicates a fair value holding for Draper Esprit of approximately £88 million, representing a fair value uplift of £26 million recognised in the year ended 31 March 2020, and a further £20 million post year-end.
The sale is the first realisation of this financial year to 31 March 2021, and follows total exits realised in the 12 months to 31 March 2020 of £40 million (2019: £16 million).
Commenting on the transaction, Martin Davis, Draper Esprit Chief Executive Officer, said: “This transaction represents a significant return on our original investment and builds on the strong momentum we have already generated since starting the new financial year. We look forward to watching Peak Games’ ongoing development as part of Zynga Inc and have no doubt that the business will continue to flourish. Our partnership with Earlybird continues to generate significant returns, enabling us to reinvest in the best European technology companies on behalf of our shareholders, and it is important to note that, following this sale, we still have a remaining portfolio of high growth technology companies such as UiPath and Smava as part of our original January 2019 investment in the EB IV fund.”