DoubleDown Interactive completes acquisition of WHOW Games

Published 14/07/2025, 21:30
DoubleDown Interactive completes acquisition of WHOW Games

SEOUL - DoubleDown Interactive Co., Ltd. (NASDAQ:DDI), a financially healthy gaming company with a market capitalization of approximately $501 million, has completed its acquisition of German social casino developer WHOW Games GmbH from Azerion for €55 million (approximately $64.3 million), the company announced in a press release. According to InvestingPro analysis, DDI currently appears undervalued based on its Fair Value estimates.

The transaction, which was previously announced, includes a potential additional earn-out payment of up to €10 million, payable at €5 million annually over two years if WHOW Games meets certain performance targets. DDI’s strong balance sheet, with more cash than debt and a remarkable current ratio of 16.04, positions it well to handle these additional payments.

WHOW Games, headquartered in Hamburg, focuses on the European market and operates both proprietary and branded social casino games. The company’s flagship brand, MyJackpot, has established a significant user base in Germany, while it also maintains partnerships with brick-and-mortar casino brands, including Merkur24.

DoubleDown Interactive, based in South Korea, develops and publishes digital games on mobile and web platforms. The company is known for its social casino title DoubleDown Casino. Through its subsidiary SuprNation, DoubleDown also operates three real-money iGaming sites in Western Europe.

The acquisition expands DoubleDown’s presence in the European social casino market, adding WHOW’s established brands and user base to its portfolio.

The purchase price calculation was based on an exchange rate of €1.00=$1.169 as of July 11, 2025, according to the company’s statement. With a robust gross profit margin of 70% and annual revenue of $337 million, DDI demonstrates strong operational efficiency. For deeper insights into DDI’s financials and 12 additional exclusive ProTips, visit InvestingPro, where you can access comprehensive Pro Research Reports covering over 1,400 US stocks.

In other recent news, DoubleDown Interactive Co., Ltd. has announced an agreement to acquire WHOW Games GmbH, a German social casino developer, for an initial payment of €55 million ($64.7 million). This acquisition aims to bolster DoubleDown’s presence in the European social casino market, particularly in Germany. WHOW Games reported unaudited revenue of €41.8 million for 2024, and the deal includes potential additional payments based on performance targets. Additionally, DoubleDown Interactive has been initiated with a Buy rating by both Texas Capital Securities and Roth/MKM. Texas Capital highlighted the company’s strong financial position and potential for dividend and M&A opportunities, while Roth/MKM noted the stock’s undervaluation compared to its peers. Furthermore, DoubleDown announced the pricing of a secondary offering of 4,347,827 American Depositary Shares (ADSs) at $8.50 per ADS. The offering, conducted by selling shareholder STIC Special Situation Diamond Limited, will not generate proceeds for DoubleDown as it involves existing shares only.

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