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.

Esports: Nodwin Invest in Freaks 4U Gaming

In January, NODWIN Gaming International Pte. Ltd (NODWIN), invested Eur 8 million in Freaks 4U Gaming GmbH, a global full-service gaming and esports company. With its convertible loan agreement of 3.6 million Euro initiated on December 27, 2023 now converted into equity, NODWIN has acquired additional shares of Freaks 4U Gaming with a contribution of 4.4 million Euro. The total investment of NODWIN in Freaks 4U Gaming stands at 8 million Euro for  a 13.51% stake in the company. NODWIN also has the option to acquire majority control in the future by swapping equity of Freaks 4U Gaming investors and founders with NODWIN shares.

Michael Haenisch, CEO of Freaks 4U Gaming, commented: “Under Akshat’s leadership, NODWIN has become a force to be reckoned with in the emerging market and the global landscape of gaming and esports. I am excited to be working alongside Akshat and his team, as we further our discussions on how Freaks and NODWIN will collaborate and grow together in this strategic alliance.”

Akshat Rathee, co-founder of NODWIN Gaming, commented: “Our collaborative journey with Freaks is growing stronger, especially in the realms of PC and mobile gaming. We hold continuous admiration for the team at Freaks as we jointly explore new avenues for cooperation. This financial contribution is a testament to our unwavering commitment to advancing together on this shared venture.”

NODWIN will appoint Niels Wolter to the Freaks 4U Gaming advisory board to consult on strategy, operations and integration, ensuring the synergy benefits identified by NODWIN and Freaks 4U Gaming are realized in a timely manner.

Why It Matters

As part of this agreement, NODWIN and Freaks 4U Gaming will exclusively start utilizing resources in each other’s key territories such as personnel, equipment and facilities. NODWIN will get access to the Freaks 4U Gaming network across the developed markets, the PC ecosystem and the full-service capabilities they have. Freaks 4U Gaming in turn will get access to NODWIN ’s emerging market network, facility capabilities in the mobile esports and youth culture ecosystems.

Esports: NODWIN Gaming Acquires Ninja Global FZCO

NODWIN Gaming International Pte Ltd (Nodwin Gaming), 100% subsidiary of NODWIN Gaming Private Limited, material subsidiary of Nazara Technologies Ltd (BSE : NAZARA), signed definitive agreements to acquire 100% ownership in Ninja Global FZCO (Ninja). Ninja has assets in esports and gaming production assets in Turkey and the Middle East.

Akshat Rathee, Co-Founder and Managing Director, NODWIN Gaming said, “We are thrilled to warmly welcome Gokhan Kazar and Doruk Demisar, Founders of Ninja Dubai and their team into the NODWIN Gaming family, marking a significant addition to our valued network. This strategic acquisition not only unlocks a plethora of new opportunities but also opens doors to numerous fresh possibilities for us as a leading gaming and esports media company. As NODWIN Gaming actively broadens its global footprint, with a special focus on key emerging markets within the new BRICS+ global network, the integration of Ninja is a natural and essential step forward. This move positions us to empower local esports ecosystems, understand, and unlock the potential of multiple emerging market.”

Why It Matters

This acquisition, which comes on the heels of acquisition of Games Marketing Services company PublishMe in October, solidifies its presence in the rapidly expanding Middle East and Turkish markets. This acquisition also readies Nodwin Gaming to expand to Central Asia, where the mobile games market is experiencing rapid growth, across multiplayer and strategy games, driven by tech-savvy youth population.

IT: One Point One Solutions Acquires majority stake in ITCube Solutions

One Point One Solutions, a next-generation Business Process Management (BPM) services company, acquired a majority stake in ITCube Solutions Pvt Ltd which is an IT + BPM/KPO services company headquartered in Pune and Cincinnati, Ohio.

Akshay Chhabra, Managing Director, One Point One Solutions said, “This strategic move represents more than just an expansion of our business—it signifies our commitment to Innovation, Growth, and Solidifying our presence on the Global stage. IT Cube Solutions brings a wealth of expertise and experience in IT + BPM/KPO services, with a strong foothold in Pune and Cincinnati, Ohio.

“This acquisition embodies a transformative milestone. It broadens our verticals and enriches our capabilities to cater to clients across diverse industries. The synergies between our companies ignite a spark of collaborative innovation, propelling us to unprecedented success. This strategic move significantly amplifies our growth trajectory, particularly in the U.S. market, fortified by our newfound expertise in the Healthcare sector and expanded IT service offerings. It positions us to navigate future challenges and opportunities impeccably, empowering us to deliver unparalleled value to our clients and stakeholders.”

Why It Matters

This acquisition will enable One Point One Solutions to expand its current verticals, including healthcare and offerings in IT services. IT Cube Solutions is a premier provider of Software Development, Business Process Outsourcing and IT-enabled Services with customers, partners & offices worldwide. The over two-decade-old professionally run, debt-free, profitable company with 600+ professionals servicing BPM & software operations offers cutting-edge operations & digital solutions in the Healthcare & Construction space.

Digital Transformation: UST Acquires Leonardo

UST, a digital transformation solutions company, acquired Leonardo, a provider of business process improvement, automation, and integration services in the Australia and New Zealand (ANZ) region. The acquisition will empower Leonardo to expand its market reach and enhance its service offerings for clients, strengthening UST’s position in the Australian market.

“This collaboration signifies our commitment to growing alongside our customers, providing them with unparalleled digital solutions, and harnessing the power of AI to unlock new levels of productivity and insight into their business,” said Stephen Chetcuti, Chief Executive Officer, Leonardo.

“The acquisition is an important step in our efforts to continue growth in the Australian market as we work to meet rapidly emerging demand and build upon UST’s position as a market leader,” said Kumaran CR, Managing Director of Australia, UST.

Why It Matters

UST has been supporting clients across industries in the Australian market for the last 8 years, providing digital transformation solutions focused on customer experience and operating model design, product engineering, organizational efficiencies through process transformation, Gen AI and data services, SaaS, cloud, intelligent automation, and cyber security solutions. Leonardo strengthens UST’s organizational efficiency offering by bringing in its expertise, client references, and local partnerships.

Headquartered in Melbourne, Leonardo’s 70+ team, with an established presence across key Australian cities, will join UST to strengthen their combined capability of delivering comprehensive digital solutions at scale throughout the ANZ region. This acquisition amplifies Leonardo’s existing expertise in business process improvement, automation, and integration and bolsters UST’s strategic alliances with key regional technology partners, further enriching their service offerings to clients across diverse industries.

EdTech: HCL Group invests INR 166 crore to acquire minority stake in Ei

Education software company, Educational Initiatives (Ei) recently announced that HCL Group has made an investment of INR 166 crore to acquire a minority stake in the company. Founded in 2001, Ei is a B2B education software company that provides schools with research-backed assessments and personalised adaptive learning solutions to help improve learning outcomes at scale. Ei has more than 1 million paid users for its two offerings: Assessments (Ei ASSET and Ei CARES) and Personalised Adaptive Learning (Ei Mindspark) and is present in India, UAE, South Africa, and Singapore.

“We have demonstrated our ability to improve learning outcomes and empower schoolteachers to achieve their intent of every child learning well regardless of their parent income. I’m excited to welcome HCL Group as investors who share our vision of leveraging the best of pedagogy & technology to improve learning outcomes for millions of students in India and around the world”, said Pranav Kothari, CEO, Ei.

Shikhar Malhotra, Director, HCL Group said, “The organization offers a distinctive blend of scalable technology, impactful social initiatives, and sustainable growth.”

Why It Matters

As part of the secondary stake sale, HCL Group acquired a part of the stake held by Mumbai-based private equity firm Gaja Capital. In 2022, HCL acquired a majority stake in vernacular edtech platform Guvi. According to Inc42’s Edtech Report 2022, the Indian edtech market will be a US$29 billion opportunity by 2030.

Ei has a market leading presence in India and the UAE. The company is now looking to expand in South Africa, Kenya, Ghana and Saudi Arabia and is exploring business partnerships in these markets with companies that align with Ei’s mission. The company has also developed offerings like Ei ASSET Arabic to suit the local needs of these countries. Ei is looking to acquire Edtech product companies focused on improving learning outcomes in their respective regions.