KKR invests $400 million in AppLovin

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America’s KKR said it will invest the sum of $400 million into AppLovin to give the app developers of all sizes the ability to finance, market, and grow their businesses.

AppLovin was founded in 2012 into the mobile gaming user acquisition and monetization space and has expanded to offer a single, comprehensive platform that gives developers the ability to connect with consumers around the globe.

In 2018, the company launched its own mobile gaming division, Lion Studios, which has already published multiple chart-topping games. The company is headquartered in Palo Alto with offices in San Francisco, New York, Dublin, Beijing, Tokyo, Seoul, and Berlin.

With accelerating revenue growth and profitability, AppLovin is a critical growth engine for mobile game developers around the world, helping to support fresh ideas and increase the healthy competition that drives game development innovation and a robust global gaming economy. To do so, the company reaches over 300 million daily active users and drives over one billion installs for gaming companies annually. Close to 90% of the top mobile gaming companies from around the world work with AppLovin. The company is well positioned for continued growth, with mobile gaming projected to be a $70.3 billion industry in 2018, growing over 25% year-over-year according to Global Games Market Report.

“We’re honored to be partnering with KKR, one of the best investment firms in the world,” said Adam Foroughi, CEO and co-founder of AppLovin. “This investment will further fuel the growth of our product and our investment in Lion Studios. KKR’s expertise will be invaluable as we continue to scale our company globally and help more app developers meet and exceed their business goals.”

“AppLovin is a robust, market leading platform in the high-growth mobile gaming market,” said Herald Chen, Member and Head of Technology, Media and Telecom at KKR. “We are excited to be backing the company and partnering with Adam Foroughi, an excellent entrepreneur, strategist and operator, and we look forward to supporting the expansion of its global mobile gaming platform through continued investment in AppLovin’s best-in-class products and services.”

KKR is making the investment primarily from its KKR Americas XII Fund.

Bank of America Merrill Lynch is serving as exclusive financial advisor to AppLovin and The Raine Group is serving as exclusive financial advisor to KKR on the transaction. Fenwick & West is serving as legal advisor to AppLovin and Wilson Sonsini Goodrich & Rosati is serving as legal advisor to KKR.

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