NAZARA TECH SHARES RISE 3% ON RS 270-CR ACQUISITION OF GERMAN GAMING FIRM FREAKS 4U

Shares of Nazara Technologies Limited surged close to 3 percent on June 28 after the gaming firm’s subsidiary signed an agreement to acquire 86.49 percent stake of Freaks 4U Gaming for Rs 271.48 crore by share swap.

At 11:23 am, the stock price of the company was trading 2.51 percent higher at Rs 833.7 on NSE.

Nazara Tech already owns 13.51 percent stake of Freaks 4U and will hold 57 percent after the completion of the deal, the company said in a statement on June 28. It will have an exclusive right to acquire the balance 43 percent stake from the Germany-based firm’s founders at its discretion, the company statement added.

The acquisition will be carried out by Nodwin Gaming International, a wholly-owned subsidiary of Nodwin Gaming Private Limited, which is a material subsidiary of Nazara Technologies, the stock exchange filing said.

The deal will help Nodwin improve its penetration in the developed markets and serve as a revenue driver, the firm said.

“This acquisition is set to bolster Nodwin’s access to developed markets, in addition to execution and planning capabilities in PC gaming and games publishing support services. The integration of Freaks 4U’s capabilities, along with its presence in key developed markets, will serve as substantial revenue drivers. This strategic alignment will complement Nodwin’s strong execution capabilities in emerging markets, enabling the establishment of a global delivery model – a pioneering achievement in the esports sector,” the statement said.

The deal is likely to be completed by July 15, 2024, subject to regulatory requirements.

Freaks 4U, started in 2011, is a Berlin-based company that focuses on gaming and esports. It had reported a turnover of Rs 240 crore for the December 2023 quarter.

2024-06-28T06:22:44Z dg43tfdfdgfd