M&A: The art of the deal

The Tech Panda takes a look at recent mergers and acquisitions within various tech ecosystems and what that means for industry.

Absolute Sports Acquires DeltiasGaming.com

Absolute Sports, a Nazara Technologies subsidiary and the parent company of Sportskeeda.com, ProFootballNetwork.com and SoapCentral.com, announced an asset purchase agreement, subject to closing conditions, to acquire all the assets of DeltiasGaming.com, a premier source of gaming and esports content in the US. The transaction is for an all-cash consideration of $900K (~INR 7.5 crores) to be paid over one or more tranches and is expected to be closed in the next 45 days.

DeltiasGaming.com had revenues of US $575K (~INR 4.8 crores) for the twelve-month period ending June 2024. Absolute Sports will use its cash reserves to fund the transaction.

“With this acquisition, Absolute Sports will now serve upwards of 5 Million US gaming enthusiasts with high quality gaming and esports related news and analysis content on our various properties.” said Ajay Pratap Singh, CEO of Absolute Sports.

Why It Matters

With this acquisition, Absolute Sports, which already serves a large gaming audience with its flagship brand Sportskeeda.com, aims to deepen its presence in the gaming and esports media publishing sector in the US region. It intends to leverage Deltia’s Gaming’s loyal user base of almost 1.5 million monthly readers and its long-standing brand equity, to establish the group as an authoritative voice in the gaming media space. The acquisition also provides the group access to a large audience on YouTube and popular gaming streaming network Twitch under the Deltia’s Gaming brand.

Nazara Technologies Limited Acquires Fusebox Games Limited

Nazara Technologies Limited (BSE: 543280) (NSE: NAZARA), India’s only publicly listed diversified gaming and sports media company, announced the acquisition of Fusebox Games Limited (“Fusebox”), a well-established IP based gaming studio in the United Kingdom. Nazara will purchase Fusebox for INR 228 Cr (US$27.2 million) in an all-cash transaction.

Fusebox publishes a successful interactive story game ‘Love Island’ and is developing new games based on popular global TV IPs. In CY23, the company reported revenues of INR 87.5 Cr (US$10.4 million) with an EBITDA of INR 11.7 Cr (US$1.4 million). During CY24, Fusebox has demonstrated strong growth with YTD revenues (Jan – July’24) at INR 116.6 Cr (US$13.9 million) with an EBITDA of ~INR 33.3 Cr (EBITDA of US$4.0 million) *

Fusebox operates IP driven interactive story games that are primarily monetized through in-app purchases, which accounted for ~92% of the total revenues in YTD July’24. The games primarily target developed markets including US, UK, Australia and Canada, Switzerland, Sweden, Denmark, Norway, New Zealand among others. The company has 30 employees primary based in the United Kingdom.

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”

Exicom Tele-systems Limited Acquires Tritium group of companies

Exicom Tele-systems Limited (NSE: EXICOM, along with its subsidiaries together referred to as, “Exicom”), India’s largest Electric Vehicle (“EV”) charger manufacturer, announced today that its subsidiary Exicom Power Solutions B.V. Netherlands  and other step down subsidiaries, have entered into a definitive agreement under which it will  acquire business and assets of Tritium group of companies (henceforth referred to as  “Tritium”), a distinguished global leader in DC Fast Chargers, headquartered in Australia.

With over 13,000 DC Fast Chargers sold in 47 countries, Tritium is recognised as a leading industry brand globally. Founded in 2001, Tritium designs and manufactures proprietary hardware and software to create advanced and reliable liquid-cooled DC Fast Chargers for electric vehicles. Tritium’s chargers are designed for both aesthetic appeal and durability in tough environments. They feature engineering that simplifies installation, ownership, and usage.

Anant Nahata, CEO, Exicom said, “This acquisition is in line with Exicom’s strategic vision to be a key contributor to the world of tomorrow by enabling an emission free future for mobility.  Exicom and Tritium have a complementary sales and product footprint and have each established leadership in their respective regions. We look forward to working with Tritium’s employees, customers, partners and other stakeholders to grow the business further and provide faster, more reliable charging experiences to EV users across the globe.”

Why It Matters

With this landmark acquisition, Exicom is set to unlock substantial long-term growth and value for its stakeholders. The acquisition adds Tritium’s manufacturing facility in Tennessee, USA, as well as a world-class engineering centre in Brisbane, Australia to Exicom’s existing presence in Asia. The acquisition expands Exicom’s global reach and amplifies its commitment to research and development to drive innovation in this growing industry. With the complementary product portfolio of Exicom and Tritium, the acquisition provides the opportunity to serve the different use cases across the world and expand EV infrastructure adoption.

According to BloombergNEF’s “Economic Transition Scenario,” which forecasts EV growth based on current techno-economic trends, EVs are slated to reach 45 percent of global passenger-vehicle sales by 2030 and 73 percent by 2040.

CloudKeeper Acquires WiseOps

WiseOps, a platform specializing in AWS cost and usage optimization, announced its acquisition by CloudKeeper, a provider of comprehensive cloud cost optimization services. The acquisition was completed for an undisclosed amount in a mix of equity and cash, making it a milestone in WiseOps’ mission to enhance cloud cost management for businesses around the world.

The company has previously secured an undisclosed pre-seed investment from CORE91.VC in December 2023. With a growing customer base of 50 clients, the company has achieved over $100,000 in revenue till date.

WiseOps has already set the benchmark in AWS cost optimization, as they are known for AI-driven recommendations and automated optimizations, empowering teams to significantly reduce cloud spend without compromising on performance or workflow efficiency. By integrating WiseOps’ intelligent tools into CloudKeeper’s robust ecosystem, clients can now access a truly end-to-end cloud optimization solution that promises enhanced savings and workflow efficiency.

Ronak Goyal, Co-founder of WiseOps commented, “This represents a significant opportunity for both WiseOps and CloudKeeper to drive innovation and deliver exceptional value. We look forward to integrating our technologies and expertise to offer even more powerful solutions for cloud cost optimization.”

Praneet Chandra, Co-founder of WiseOps, stated, “Fifteen months ago, Ronak and I founded WiseOps in response to companies struggling with rising costs and cloud infrastructure challenges, leading to layoffs. Our journey began with our first customer, where we reduced their cloud bill by 50%.”

“WiseOps was the missing piece of the puzzle,” said Deepak Mittal, co-founder and CEO of CloudKeeper. “By joining forces with them, CloudKeeper has become a truly comprehensive cloud cost optimization solution. It will enable us to cater to a broader range of clients, address more complex use cases, and help businesses optimize and engineer their cloud environments more effectively.”

Why It Matters

This acquisition is imperative in the future landscape of cloud optimization, as WiseOps and CloudKeeper, forces are combined to drive a new frontier of cost efficiency in business across the world. This assures that together, unmatched value and innovation will be delivered in cloud cost management.

Nazara Technologies Limited Acquires STAN

Nazara Technologies Limited (BSE: 543280) (NSE: NAZARA), India’s only publicly listed diversified gaming, esports and sports media company, through the Company’s wholly owned subsidiary Nazara Dubai FZ, announced an acquisition of 15.86% stake in GetStan Technologies Pte. Ltd (“STAN”), a leading esports community platform in India. Nazara will purchase 15.86% in STAN for ~INR 18.4 Cr (US$2.2 million) in an all-cash secondary transaction.

STAN is a key player in the Indian esports and fan engagement space, building a mobile-first platform that fosters connections among gamers and supports content creators with tools to succeed. As of July 2024, STAN’s user base has surpassed 12 million, with over 80% of users coming through organic and referral-based channels. The platform has shown strong monetization, boasting over 500,000 paying users and a high 30-day retention rate of over 60%. Its mobile app has gained significant traction, consistently ranking among the top 5[1] on the Google Play Store with a 4.7-star rating over the past year.

“Nazara’s investment in STAN strengthens our position in the rapidly growing gaming and esports landscape. STAN’s mobile-first approach and focus on community engagement align perfectly with our vision to become a leading player in the global esports ecosystem. This acquisition allows us to expand our reach while empowering content creators and fostering a stronger gaming community,” said Nitish Mittersain, Founder and CEO of Nazara Technologies.

Parth Chadha, CEO of STAN expressed his excitement, “Nazara’s investment will be a major boost for STAN, fast-tracking our journey to redefine gaming and esports, communities and help us achieve our vision.”