Streamplay Studio expands into North American market with Noodlecake acquisition
Streamplay Studio (ASX: SP8) will acquire North American gaming company Noodlecake Studios as part of a strategic move to strengthen its regional and global gaming footprint.
Founded in 2011, Noodlecake owns over 60 in-house and published games with more than 270 million downloads to date and has established partnerships with tier-one brands including Apple, Google, Xbox, PlayStation, Nintendo and Steam.
The share sale agreement will see Streamplay purchase Noodlecake from parent company and Chinese mobile game publisher Zplay (HK) Technology.
Profitability key
Noodlecake’s profitability was a key consideration in the buyout.
The company has generated significant revenue over its 13-year history, with more than $15 million in in-app purchases, $9m in direct game sales and $18m in advertising during that period and an annual revenue of $7.3m for the three years to December 2023.
“This is a profitable business with robust revenues that delivers synergies complementing Streamplay’s existing technology and service offerings, creating significant opportunities to enhance our product suite,” Mr Mondello said.
“Over the past two years, we have worked diligently to maintain strong cash reserves while identifying the right opportunity and I believe this acquisition positions Streamplay for substantial growth in the global gaming industry.”
Shared synergies
The acquisition is expected to provide immediate product and geographic revenue diversification through shared synergies.
Streamplay’s existing game studio — which is currently focused on supporting cloud gaming research and development activities — will work alongside Noodlecake’s experienced team, whose established practices and market-tested insights will inform new developments.
Noodlecake will gain operational advantages through Streamplay’s corporate and finance teams based in Australia, providing essential financial oversight and resources to support the expansion of its publishing reach.
Streamlined integration
With both companies operating on compatible technology and operational platforms, the integration process following the acquisition is expected to be streamlined, allowing for swift collaboration and project rollouts.
“This is an exciting milestone for us as we expand into North America and make further inroads into the highly lucrative global gaming market,” Streamplay chair Bert Mondello said.
“Noodlecake’s track record of delivering tier-one products spanning mobile, desktop and console platforms exemplifies the innovation and quality we aim to integrate into our ecosystem.”