Nazara Technologies subsidiary Datawrkz on October 30 announced that it has acquired a 100 percent stake in London-based growth marketing agency Space & Time for £4.8 million (about Rs 52.3 crores) in a cash and stock transaction.
This acquisition, the first one by Datawrkz, is expected to fuel the company's growth ambitions across Europe and North America and help it emerge as a major player in the global digital advertising market.
As per the transaction, Datawrkz will be paying £3.3 million (Rs 36.1 crore) cash, while £1.5 million (Rs 16.2 crore) will be paid through a share swap. The acquisition is being funded through Nazara UK’s debt-based financing.
Datawrkz stated that the deal will enable both the companies to deliver impactful digital advertising solutions by combining Space & Time's expertise in growth marketing, media, and technology with its own strengths in programmatic advertising technology and optimisation. It will also drive further expansion, particularly in the UK and the European markets.
Space & Time will also gain access to Datawrkz’s technology and products, enhancing their ability to deliver effective campaigns in Europe and North America, the company stated.
Founded in 2013 by Senthil Govindan, Bengaluru-based Datawrkz is an advertising technology firm that offers publishers, agencies and brands a range of programmatic advertising and ad monetisation solutions to improve their user and revenue growth. Nazara Technologies had picked up a 33 percent stake in Datawrkz in 2022 to foray into the advertising vertical.
"We are embarking on an inorganic strategy to complement our strong, independent growth, and Space & Time is an ideal partner. The cultural alignment and shared focus on delivering value for clients make this acquisition a perfect fit. We anticipate this collaboration will significantly boost growth for both the companies, with Space & Time driving our expansion in Europe," Govindan said in a statement.
Launched in 2000 by Peter Jones, Space & Time has helped small and large businesses to optimise the entire customer experience, by leveraging media and technology to propel growth across a range of sectors. Its clients include Taylor Wimpey Plc, Caffe Nero, O2 Retail, Save The Children, and Wolf 1834.
"As two fast-growing and specialist businesses, the potential between us made this the perfect match and the investment in key areas such as data and technology that this deal brings will help future-proof our clients’ businesses as we continue to grow," said Chris Jones, CEO of Space & Time.
The agency had reported a net revenue of £10.7 million (Rs 116 crore) in FY24, as compared to £9.8 million (Rs 107 crore) in FY23. It reported an EBITDA of £1.9 million (Rs 21 crore) in FY24, as compared to £1.6 million (Rs 18 crore) in FY23.
Last month, Nazara Technologies had raised Rs 900 crore from a clutch of new and existing investors, including SBI Mutual Fund, for its acquisition spree and global expansion as the diversified gaming and sports media firm looks to scale up its portfolio of businesses.
Adtech business accounted for about 10 percent of Nazara's revenues in Q1-FY25. The segment saw a 7 percent decline in revenues to Rs 25.7 crore for the quarter, from Rs 27.1 crore in the same quarter last year. The revenue drop was due to its decision to move away from low-margin clients to high-margin clients and product businesses.
North America accounted for 44 percent of the company's revenues in Q1 of FY25, while India contributed 33 percent and the rest of the world contributed the remaining 23 percent.
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