Sweden’s MTG has agreed to acquire San Francisco-based Kongregate from GameStop at an enterprise value of $55 million. Founded in 2006 by siblings Emily Greer and Jim Greer, the gaming company raised a $5 million Series A round in 2007 led by Greylock Partners and was later sold to GameStop in 2010. Kongregate has 14 million monthly users across all platforms, and its popular mobile game AdVenture Capitalist has nearly 21 million downloads.
Kongregate grew net sales by 38% last year, to $35 million, and expects that figure to grow by a further $15 million this year. The company has recently expanded its platform to include first-party game development, thanks in part to the acquisition of games studio Ultrabit. And that deal may be just the start of Kongregate’s acquisitive ambitions, as MTG has said it intends to leverage the gaming platform to acquire other developers.
Kongregate’s publishing services include consulting, analytics, user acquisition, launch support and ad management. MTG's acquisition of the company follows its pickup of Hamburg-based InnoGames and gives the digital entertainment group a foothold in both the US and European markets.