Nazara Technologies rose 1.64% to Rs 641.05 after the company announced the acquisition of the leading US interactive entertainment company for children, WildWorks.
Nazara will acquire 100% of the company and its IP from existing shareholders in a cash transaction.
The total cost of the proposed acquisition will be $10.40 million, which will be paid in cash to WildWorks, Inc.’s creditors at closing. The current shareholders of WildWorks, Inc. will not receive any compensation for the proposed acquisition.
WildWorks’ revenues were $13.8 million in CY21 and $5.8 million in H1CY22, and EBITDA was $3.1 million in CY21 and $1.6 million in H1CY22.
Founded in 2003, WildWorks is one of the most successful and established game studios targeting the children’s market for ages 8-12 and is the top-grossing apps in its category. Over the past decade, Wildworks’ mobile apps have attracted more than 150 million players, and as a result of today’s deal, WildWorks is expected to expand into new products and territories in 2023 and beyond. Two of the original founders, CEO Clark Stacey and COO Jeff Amis, will remain with the company in their current positions and lead the next phase of growth as part of the “Friends of Nazara” network.
“With its strong brand presence and talented development team in Utah, WildWorks enables us to strengthen our leadership position in the gamified learning space for kids,” said Nitish Mittersain, founder and MD of Nazara Technologies. “Animal Jam’s 8-12 player demographic is building on the success of our Kiddopia early learning product for ages 2-7, extending our reach with families while also increasing our focus on quality educational content Successful brand partnerships such as Tag with Ryan also demonstrate the potential to leverage the WildWorks platform in new categories.”
“With the ubiquity of connected mobile devices among children, parents recognize that the quality of a child’s screen time is just as important to monitor as the quantity,” Mittersain noted. “WildWorks has won the trust of millions of families for its approach to safe social gameplay in Animal Jam, and Nazara’s global capabilities will help bring those experiences to millions of others.”
Nazara Technologies is a leading India-based diversified gaming and sports media platform with a presence in India and in emerging and developed global markets such as Africa and North America. It has offerings across the interactive gaming, eSports, ad-tech and gamified early learning ecosystems, including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin, PublishMe and Sportskeeda in eSports and eSports media, OpenPlay, Halaplay and Qunami in skill-based, fantasy and trivia games, and Datawrkz in digital advertising technology.
Nazara Technologies’ consolidated net profit was up 22.2% to Rs 16.50 crore on a 70% increase in net sales to Rs 223.10 crore in Q1 FY23 compared to Q1 FY22.
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(This story has not been edited by Business Standard staff and is generated automatically from a syndicated feed.)
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