Gaming stock owned by Nikhil Kamath acquires UK-based Fusebox Games Ltd for Rs.228 crores. The share price of the company gained more than 5 percent after the announcement of the acquisition.
What happened
Nazara Technologies Limited has acquired 100 percent stake in UK-based Fusebox Games Limited for Rs.228 crore (approximately US$27.2 million) in an all-cash deal. The acquisition will be completed within the next 45 days. Nazara Technologies is India’s only publicly listed gaming and sports media company.
By joining forces with Fusebox, Nazara aims to further strengthen its position as a global gaming company of meaningful scale. The acquisition provides Nazara with access to Fusebox’s strong relationships with global rights holders and its reputation for delivering high-quality content that unlocks additional value and revenue streams for brands.
Fusebox is a well-established Intellectual Properties (IP) based gaming studio, renowned for its hit game “Love Island”. It is also working on new titles inspired by popular global TV IPs. Additionally, Fusebox focuses on developed markets like the US, UK, Australia, Canada, and several European countries, with a team of 30 employees based in the UK.
Management Commentary
Nitish Mittersain, Founder & CEO of Nazara said, “We see a large opportunity in building an IP based global gaming business that benefits from our core base in India where we can support global studios through enhanced user acquisition strategies, data analytics, live operations and new initiatives such as implementing our in-house AI playbook. Many of our existing IP’s are good examples of this strategy and we are happy to join forces with the talented team at Fusebox as we continue to build Nazara into a global gaming company of meaningful scale.
Share price movement
In Thursday’s trading session, Nazara Technologies Limited’s share price reached an intraday high of Rs.957 per share from its previous close of Rs.910.15 apiece. The share gained more than 5 percent in the session after the announcement of the acquisition.
Shareholding Pattern
As per the June 2024 shareholding pattern, the promoters of Nazara Technologies Limited hold a 10.05 percent stake, while Foreign Institutional Investors hold a 6.05 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 16.76 percent and 67.13 percent, respectively in the company. Nikhil Kamath owns 1.97 percent stake in Nazara Technologies Ltd.
Financials
For the quarter ended March 2024, Nazara Technologies Limited reported revenue from operations of Rs.266.21 crore and net profits of Rs.0.18 crore. Year-on-year, this reflects a revenue decrease of 8 percent and a profit decline of 98 percent respectively.
About the company
Nazara Technologies is India’s only listed gaming and esports company, with majority ownership of several leading gaming and esports brands with presence in India, the US, and other global markets.
Written by – Siddesh S Raskar
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