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Valuation multiples for F2P games–the Innogames valuation

By on October 14, 2016

It’s not often that you get details about the acquisition of private companies, but the recent acquisition of a stake in Innogames by Sweden’s MTG is a rare counter-example.

In an extremely detailed official announcement, Innogames stated that the transaction gave innogames an Enterprise Value (i.e. the value of the equity plus any debt, minus any cash) of EUR260m.


That is the value of the whole company, but MTG is only acquiring 35% with an option to acquire a further 16% in 2017.

Innogames expects to make EUR125 million in revenue in 2016, with “an anticipated EBITDA margin of approximately 20% in 2016”.

They even helpfully provided valuation metrics: “The 100% Enterprise Value of EUR 260m is equivalent to 2.1x 2016 expected sales and 10.4x expected EBITDA”.

If only all companies were so transparent in their business dealings.


(GP Bullhound advised Innogames on the transaction).

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: