SUMMARY
- Nazara Technologies has acquired UK-based Fusebox Games for Rs 228 crore or $27.2 million in an all-cash deal.
- The deal forms part of the company’s expansion strategy in the gaming segment as per the founder Nitish Mittersain.
- In March, the Mittersain-led firm had declared to invest $100 million in mergers and acquisitions within 24 months.
UK-based Fusebox Games has been acquired by Nazara Technologies for Rs 228 crore or $27.2 million in an all-cash deal as of August 8.
The deal forms part of the company’s expansion strategy in the gaming segment, which Nitish Mittersain, the founder of the diversified gaming and sports media firm Nazara Technologies, revealed would be one of the biggest income sources in the coming years.
Mittersain 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.”
Fusebox Games is working on new games based on popular global TV IPs and has developed an interactive story game titled Love Island. Currently, the studio focuses mainly on developed countries such as the United States, United Kingdom, Australia & Canada, with Switzerland, Sweden, Denmark, Norway & New Zealand also as target markets.
During the calendar year of 2023, Fusebox generated revenue of Rs 87.5 crore ($10.4 million) with an estimated EBITDA of Rs 11.7 crore ($1. 4 million). In January-July 2024, the studio was able to produce Rs 116.6 crore in revenue ($13. 9 million) with an EBITDA of around Rs 33.3 crore ($4 million). Fusebox mainly generates revenues from the games through sales of in-game items which constituted about 92% of the company’s revenues for the period from January to July.
Nazara’s total revenue and profit for Q1 FY25 were Rs 254.43 crore and Rs 17.8 crore respectively.
Revenue from operations for FY24 jumped 4.3% to Rs 1,138 crore from Rs 1,091 crore in FY23. The firm registered a healthy profit of Rs 75 crore in FY24 from Rs 61 crore in the FY23 with a 23% YoY growth on account of its ability to keep the costs under check and an increase in other income.
The acquisition is the latest after Nazara Technologies upped its holding in Kiddopia owner Paperboat Apps to 100% by acquiring the rest 48.42% stake for Rs 300 crore. It also increased its ownership stake to 100% in mobile gaming subsidiary Nextwave Multimedia by acquiring the remaining 28.12% from founder shareholders PR Rajendran, R Kalpana and PR Jayashree’s.
In March, Mittersain-led firm declared to be undertaking an investment of $100 million on mergers and acquisitions within 24 months. Since then it has invested in Circle of Games, and has acquired IP rights of Ultimate Teen Patti from Games24x7 through its subsidiaries, and has also taken over the assets of Deltias Gaming.
Earlier in 2024, the online gaming giant had picked up Rs 250 crore or $30 million from Kamath Associates & NKSquared backed by Zerodha’s co-founders, ICICI Securities, Plutus Wealth Management among others.
