DoubleU acquires Turkish studio Paxie Games for up to $67m

Social casino developer DoubleU Games has acquired Turkish studio Paxie Games.

The deal for the Merge Studio: Fashion Makeover developer sees DoubleU pick up a 60% stake for $27 million. The remaining 40% will be purchased over the next three years for as much as $40m, subject to hitting certain financial targets.

In total, the purchase could be worth up to $67m including earnouts.

The acquisition is set to be financed through a combination of cash and treasury shares. It’s expected to close in Q1 2025.

Merge market entrance

DoubleU said the deal was part of the company’s plans to enter the growing merge-2 market. It added the deal also marked the first time its games would be playable in South Korea, despite being based in the country.

AppMagic estimates show that Paxie’s flagship title Merge Studio has generated $12.7m in gross revenue to date from player spending.

“We believe the acquisition of Paxie Games represents a significant move to secure an expanded portfolio of new mobile gaming titles, driving growth and unlocking new opportunities,” said DoubleU Games chief financial officer Jay Choi.

“We recognise Paxie Games’ competitive edge lies in users’ extended playtime with intuitive gameplay, instant rewards and seamless integration between meta and core game mechanics. Additionally, its operational capabilities are enhanced by execution of diverse and creative live ops events.”

Paxie Games CEO Direnç Çelik added: “We are thrilled about the incredible opportunities ahead for our company. Merge Studio, our rapidly scaling hit game, is only the beginning. Through our full-scale collaboration with DoubleU Games, we are set to achieve even greater growth by expanding our portfolio with exciting new games, reaching a broader audience, and further growing our business.

“By leveraging DoubleU Games’ established marketing network in the US, we plan to drive substantial growth and expand our reach. Together, the combined expertise of Paxie Games in game development and DoubleU Games’ financial strength will pave the way for mutual success and groundbreaking innovation in the gaming industry.”