Games publisher Zynga buys Canadian mobile apps co

Reuters News
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Posted: Jul 08, 2011 2:58 PM
Games publisher Zynga buys Canadian mobile apps co

NEW YORK (Reuters) - Zynga Inc, the top social games publisher on Facebook, is buying a Toronto-based mobile applications developer, in a move that could help it expand beyond the social network.

On Friday, Zynga said in a blog post it was buying Five Mobile Inc, a Canadian company that develops mobile applications for large companies. Financial terms of the deal were not disclosed.

The transaction is Zynga's 15th acquisition in 13 months.

As part of the deal, four of the company's employees will join Zynga and work at the newly created "Zynga Toronto," the company's first development studio in Canada. Canadian provinces such as Ontario, British Columbia and Quebec offer attractive tax incentives for video game companies.

Zynga is the top games publisher on Facebook and its main revenue generator comes from selling virtual items such as tractors and weapons in games on personal computers. It has taken steps to reduce its reliance on Facebook in recent months by acquiring companies focused on mobile games so it can come out with more games users can play on smartphones and tablets.

The news comes a week after Zynga filed with regulators on July 1 for an initial public offering of up to $1 billion.

(Reporting by Liana B. Baker; Editing by Richard Chang)