KakaoGames will acquire global casual game company Me2on for about 98 billion won.

KakaoGames said on Sept. 15 its board decided to acquire a 39.56 percent stake in Me2on. Once the transaction is completed, KakaoGames will become Me2on's largest shareholder and secure management control.

The acquisition is KakaoGames' first merger and acquisition since it reorganised under a new management structure. KakaoGames plans to broaden its portfolio by adding social casino, casual games and mind sports to its existing game business and to expand its overseas revenue base.

Me2on, founded in 2010, has operated in markets in Asia, North America and Europe, focusing on social casino and casual games. It listed on the KOSDAQ in 2016 and posted revenue of about 120.9 billion won and operating profit of about 12.6 billion won last year. Overseas revenue accounts for more than 80 percent of the total.

Me2on has subsidiaries including Ghost Studio and Ace Interactive Holdings. It is also developing content businesses such as dramas, webtoons and web novels, in addition to games.

KakaoGames plans to use Me2on's existing profit base to improve earnings stability while combining the two companies' business capabilities to step up efforts to target overseas markets. It will also review the possibility of joint development using Me2on's intellectual property, content business and development studios in China.

KakaoGames CEO Si-woo Lee (이시우) said, "This acquisition is the first M&A under the new management structure targeting a company with proven business performance and profitability." He added, "We will continue M&A for future growth."

Me2on CEO Chang-wook Son (손창욱) said it would cooperate with KakaoGames to expand business competitiveness in global markets.