Gaming giant Modern Times Group (MTG), out of Sweden, has acquired Indian gaming company, PlaySimple, for $360 million.

MGT will pay 77% of the acquisition in cash and 23% in stock. In addition, should PlaySimple reach certain performance metrics, it will be rewarded an additional $150 million, bringing the total deal potential to $510 million.

In 2016, PlaySimple raised $4 million from Elevation Capital and Chirate Ventures (with a 4X valuation of $16 million). However, PlaySimple raised only $4.5 million in total investment capital. Early investors in PlaySimple are now sitting atop a company with a more-than 100X valuation return.

PlaySimple co-founders Siddhanth Jain, Suraj Nalin and Preeti Reddy said in a joint statement:

“We’re very proud of the games we’ve developed over the years, and of the infrastructure and scale that we’ve achieved with our team. As we join the MTG family, we look forward to leveraging our proprietary technology across MTG’s gaming portfolio, expanding into the European market, investing in cutting-edge technology and building exciting new games.”

PlaySimple’s free-to-play games have accumulated over 75 million installs and have almost 2 million daily active users.

Game tech companies are experiencing rapid valuation growth. It took just 5 years for PlaySimple’s $4.5 million investment to grow to a half billion.

Investors should keep their eye on exciting startups like PlaySimple and others like TCI Entertainment (which is raising private money now) that could crush traditional valuations in record time.

Learn more about the PlaySimple acquisition, HERE.