Nazara Technologies, a leading gaming and entertainment giant, has further solidified its portfolio by acquiring a 100% stake in its subsidiary Nextwave for INR 21.6 crore.
This strategic move follows Nazara’s initial acquisition of a majority stake in Nextwave in January 2018, followed by an additional 19.5% stake in May last year, bringing its total stakeholding to 71.88%.
The fresh acquisition of Nextwave underscores Nazara’s commitment to enhancing its offerings in the virtual interactive sports genre, both in India and emerging markets. During its Q4 FY24 earnings announcement, Nazara highlighted that this acquisition aligns with its growth objectives and aims to consolidate its shareholding in Nextwave.
The total consideration of INR 21.6 crore will be paid in two tranches. The first tranche involves Nazara acquiring 1,000 equity shares for INR 2.3 crore in cash. In the second tranche, Nazara will acquire 8,375 equity shares for INR 19.3 crore, which may be settled in cash, through equity share issuance, or a combination of both.
Founded in 1995, Nextwave, based in Chennai, specializes in developing casual and multiplayer mobile games in the sports genre, including the popular World Cricket Championship series with over 100 million downloads across platforms over the last seven years.
In FY24, Nextwave recorded a turnover of INR 21.92 crore, compared to INR 23.79 crore in the previous fiscal year, with a profit of INR 3.16 crore in FY23.
Nazara’s recent acquisitions, including the stake in Web3 gaming platform Circle of Games (COG) and the acquisition of Comic Con India by its subsidiary NODWIN Gaming, signify its strategic focus on expanding its gaming ecosystem.
Despite a decline in consolidated net profit and operating revenue in Q4 FY24, Nazara continues to consolidate its position in the gaming industry. Shares of Nazara closed 0.4% lower at INR 614.55 on the BSE ahead of its Q4 results.
