Ace investor Rakesh Jhunjhunwala-backed diversified gaming and sports media platform Nazara Technologies on August 27 said it has acquired 100 percent equity stake in Hyderabad-based skill gaming company OpenPlay.
"The Board of Directors today have approved to make strategic investment for the proposed acquisition of 10,000 equity shares of Rs 10 each representing 100 percent of OpenPlay Technologies from its existing shareholders i.e. Sreeram Reddy Vanga and Unnati Management Consultants LLP at a consideration of Rs 186.41 crore, in one or more tranches," the company said in its BSE filing.
In the first tranche of the strategic investment, the company said it would acquire a 23.30 percent stake in OpenPlay for Rs 43.43 crore by end of Q2FY22. The remaining tranche of the strategic investment will be completed during the FY22, it added.
OpenPlay, which reported a turnover of Rs 53.48 in FY21, operates a multi-game consumer gaming platform under the 'Classic Games' brand which hosts popular skill-based games and operates the highest standards of technology, game fairness, advanced player protection, security, AML, and advertising standards.
"The OpenPlay acquisition offers an opportunity for Nazara to build a network of skill gaming destinations operating on one common tech platform under the proven leadership of Sreeram and his team at OpenPlay," said Manish Agarwal, CEO of Nazara.
OpenPlay is led by Sreeram Reddy Vanga who is a serial entrepreneur in the global online gaming industry. Previously he founded and led CozyGames to become the second-largest Bingo network in the UK before being acquired. Sreeram was also part of the early team at PartyGaming which launched IPO on the London Stock Exchange in 2005.
Well-known investor Rakesh Radheshyam Jhunjhunwala held a 10.82 percent equity stake in the company, and another investor Arpit Khandelwal had an 11.32 percent stake, while foreign portfolio investors owned 8.96 percent shareholding as of June 2021.
Nazara shares settled at Rs 1,711 on the BSE on August 27, up 1.44 percent.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
