Social casino developer Playstudios has decided to enter the stock market by merging with SPAC. Thanks to the upcoming deal, the company’s valuation will exceed $1 billion.This was reported by Bloomberg last week, and now the information has been confirmed by Playstudios itself.

In the second quarter of 2021, the studio will conclude a deal with Acies Acquisition Corp. — SPAC-a firm whose chairman is Jim Murren, CEO of MGM Resorts International. This company, specializing in the casino and hotel business, is among the investors of Playstudios.

Recall that companies often enter the stock market through an initial public offering (IPO). However, there are alternatives to this procedure — for example, a merger with a “special purpose acquisition company” (SPAC). Unlike an IPO, this process takes less time and is considered simpler.

Merger with Acies Acquisition Corp. will raise the valuation of Playstudios to $1.1 billion. She will receive $250 million from institutional investors, and the studio’s shareholders will receive $150 million in cash and will own 64% of the new firm.

Andrew Pascal, co-founder and CEO of Playstudios, will retain his post. According to him, the company uses the raised funds for business development. At the same time, you should not expect the purchase of other developers, because now the studio does not have the funds for this.

Playstudios is known for the myVegas series of games. Thanks to a special loyalty system, users can earn points, which can then be spent in real casinos of the MGM Resorts group. Thus, the company combines social casinos with gambling for real money.