Gaming giant Zynga to acquire Turkish company Peak for $1.8 billion

U.S. game developer Zynga Inc. has agreed to buy Turkish game company Peak for $1.8 billion in the biggest acquisition ever, during a boom in the industry sparked by masses of people home-bound due to the coronavirus pandemic, Bloomberg reported on Monday. 

The deal, set be completed in the third quarter, consists of $900 million in cash and $900 million in Zynga stock, Bloomberg quoted the San Francisco-based company as saying in a statement Monday. 

The deal with the Turkish game company will bring Zynga a popular line-up of puzzle games called Toon Blast and Toy Blast, it said.

The acquisition arrives during a time of pandemic-driven surge in business for video-game companies.

The shares of the American gaming company increased by over four percent to $9.56 in premarket trading on Monday morning. 

At $1.8 billion deal surpasses earlier transactions, including the 2018 deal to buy the majority stake in Finland’s Small Giant Games for $560 million, Bloomberg said.

Founded in Istanbul in 2010, Turkish company Peak has been developing mobile games that have reached hundreds of millions of users across the world.

In 2018, Zynga acquired another Turkish mobile gaming company, Gram Games, for $250 million.