CVC Dreams Big with $5B Dream Games Acquisition
Plus: We outline portco M&A and exits from last week.
Dream come true.
CVC has closed a deal to buy out Dream Games’ venture investors and become the Istanbul-based mobile gaming company’s sole sponsor. The deal, which includes $2.5 billion in investment from CVC, values the six-year-old platform at $5 billion.
The $2.5 billion in capital comprises a mix of equity from CVC as well as debt financing from Blackstone. The deal will see the exit of early VC backers such as Balderton, Makers Fund, Index Ventures, and IVP, while the company’s five co-founders — Soner Aydemir, Ikbal Namli, Hakan Saglam, Eren Sengul, and Serdar Yilmaz, all former Peak Games executives — will retain majority ownership.
The transaction is expected to close in Q3 of this year.
Final boss.
Most of CVC’s history in the video gaming sector — which now spans six deals — has been in sports betting. Dream Games stands out as the firm’s largest online gaming deal to date. Here are the others:
Jagex (2024): CVC, alongside Haveli Investments, agreed to acquire the UK-based developer of the MMORPG RuneScape for approximately £910 million ($1.2 billion).
Gaming1 (2021): CVC partnered with the Belgian gaming and sports betting operator to support its growth in regulated online gaming markets. Financial terms were not disclosed, though the company did seek €300 million ($341 million) in debt the following year to finance the transaction.
Tipico (2016): CVC acquired a majority stake in the German sports betting company for €1.34 billion.
Sisal (2016): CVC bought the Italian gaming operator for €1 billion.
Sky Betting & Gaming (2015): CVC acquired a 71 percent stake from Sky plc in the company’s UK-based online gambling arm for £600 million, valuing the business at £800 million. Sky retained a 20 percent stake and a board seat.
The only two assets to have been exited are Sky Betting & Gaming (in 2018 for £3.4 billion) and Sisal (in 2022 for €1.9 billion). For both companies, CVC’s growth strategy included geographic expansions, with Sky Betting entering German and Italian markets and Sisal entering Turkish and Moroccan markets.
Making the bed.
At Dream Games, though, this may not prove to be a winning strategy. Its flagship game, Royal Match, surpassed Candy Crush Saga in 2022 to become the world’s top-grossing mobile game — an accolade achieved through an aggressive marketing campaign that featured global stars like LeBron James and Shakira.
CVC, for its part, has hinted that its growth plans for the company lie outside of the flagship title, though the first has declined to comment for this article. Nick Clarry, managing partner and head of CVC’s sports, media, and entertainment team, stated in a press release: “Dream Games has created some of the world’s most beloved and commercially successful IP - including King Robert, King Richard & The Dark King. We are very pleased to have the opportunity to work with this world-class management team, and help them realize their ambitious vision in the Royal Universe."
PE portcos also saw some full and partial exits last week, as well as some exits-to-be:
Investcorp exited RESA Power, an electric grid service provider, selling it to middle market firm Kohlberg. Investcorp first acquired the asset in 2021. Financial terms of the deal were not disclosed.
CVC sold its stake in Omada, an identity security software provider, to existing investor GRO and new investor Kirk Capital for an unknown sum.
News broke that BDT & MSD Partners is in talks with Bain Capital to sell a partial stake in Acrisure, a Michigan-based insurance broker, for $2 billion.
Thoma Bravo agreed to sell a stake in healthcare tech firm NextGen Healthcare to Madison Dearborn for an unknown amount.
Meanwhile, portco M&A was in full swing:
Rover, a petsitting platform Blackstone took private for $2.3 billion last year, bought European competitor Gudog for an unknown sum.
Apax-backed Altus Fire and Life Safety, a fire protection services company, acquired Albany-based Firetek Sprinkler Systems for an undisclosed sum.
BlackRock’s Influence Media Partners acquired the name, image, and likeness of DJ Khaled. The partnership also includes an agreement to produce original content across film and television. Financial terms were not disclosed, but sources allege the deal is a “low nine-figure” (~$100 million) partnership.
Blue Owl-backed STACK Infrastructure sold its European colocated data center business to Apollo Global Management for an unknown sum.
And there were some key people moves:
Xpress Wellness, an urgent care chain backed by Goldman Sachs, brought on David Pyle as its next chief executive, replacing Grant Asay, who retired in November 2024. Pyle’s previous experience includes senior leadership roles at Gastro Care Partners, Solis Mammography, and Adeptus Health,
Mindr, a substance safety provider backed by L Catterton, appointed independent consultant Jonathan Beamer as its new chief marketing officer.
See you next week!