Acquisition confirms focus on convergence of messaging, communities and gaming
Palringo has today announced it is acquiring burgeoning Swedish game developer Free Lunch Design (FLD), a team who have previously delivered more than 70 games including titles for Paramount and Disney as well as their own titles.
Unlike many messaging and social-oriented businesses, Palringo is already a sustainable and profitable business. Over the past two years, Palringo has quietly transformed itself from a provider of high performance mobile messaging services into a messaging based, community-oriented games platform, and a growing proportion of Palringo’s revenue is coming from games and game-related activities. The FLD acquisition positions the company ideally for future development, providing the capacity to launch a series of richer, community-oriented games over the coming year
Commenting on the deal, Tim Rea, CEO of Palringo said:
“The thing that struck us about the guys at FLD was not only their ability to build and manage games, but their grasp of the value of our messaging-based, community-first approach to gaming. We’ve been working with their team actively for a few months now and are very pleased to be joining forces with them to maintain the fantastic growth we’ve had over the past two years.”
Magnus Alm, CEO of Free Lunch Design continued:
“We’ve turned down several acquirers these last years, but Palringo had a unique offer: access to an extremely engaged and well monetizing community. Early test releases of games have been hugely successful. We’re excited to define the future of community gaming as a part of Palringo.”
London-headquartered Palringo was born in the North East of the UK when 21-year-old engineering student Martin Rosinski created a real-time mobile messaging tool to complement the industrial applications that his dad’s engineering business offered. The tool quickly evolved into a general mobile messaging application, but the team soon found that the high performance platform enabled them to go beyond the standard person-to-person messaging to support conversations between large communities of users, and today the company supports several hundreds of thousands of thriving communities exchanging billions of messages each month.
According to Martin: “the move towards gaming was natural for us in that the largest single area of focus amongst our communities was gaming and our supporters responded very well when we introduced simple games of our own. When we looked around the market we saw plenty of cases where game developers were seeking to bolt on messaging and social functions but few cases where games were built on top of the communications platform. The combination of games, messaging and communities creates a fantastic, sustainable proposition.”
Palringo aims to exceed last year’s 100% revenue growth in the next 12 months thanks to this unique fusion of mobile, social and gaming.
Free Lunch Design (FLD), based in Gothenburg, is one of the top ten fastest-growing tech companies in Sweden. The team behind FLD have delivered games for companies such as Disney, Marvel and Paramount before focusing on their own titles.
Since then, FLD has been named a Technology Rising Star by Deloitte as well as being nominated for a Golden Joystick and Best Nordic Innovation awards.