Moneycontrol PRO
Open App

Nazara Tech acquires US firm for $10.4 million, stock rises 2%

The company in a release said it has acquired US children’s interactive entertainment company WildWorks. Nazara will acquire 100 percent of the company and its IP from existing shareholders in an all-cash transaction.

August 30, 2022 / 10:23 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Shares of gaming company Nazara Technologies rose over 2 percent on August 30 after the company said it has made acquisitions worth $10.40 million in the United States.

As of 9.20 am, the stock traded up 2.08 percent at Rs 643.80 on BSE.

The company in a release said it has acquired US children’s interactive entertainment company WildWorks. Nazara will acquire 100 percent of the company and its IP from existing shareholders in an all-cash transaction.

WildWorks’ revenues were $13.8 million in CY21 and $5.8 million in H1CY22, and EBITDA were $3.1 million in CY21 and $1.6 million in H1CY22, the release said. . In the past decade, Wildworks’ mobile apps have attracted over 150 million players, and as a result of today’s deal, WildWorks is expected to expand into new products and territories in 2023 and beyond.

Two of the original founders, CEO Clark Stacey and COO Jeff Amis, will remain with the company in their current positions.

Close

Follow our live blog for more market updates

“With its strong brand presence and talented Utah-based development team, WildWorks enables us to solidify our leadership position in the gamified learning space for kids,” said Nitish Mittersain, Founder and MD of Nazara Technologies. “The 8-12 player demographic of Animal Jam builds on the success of our Kiddopia early learning product for kids 2-7, extending our reach with families while maintaining our focus on high quality educational content.”

WildWorks describes its Animal Jam game as an online playground for kids who love animals and the natural world.Following the Nazara acquisition, WildWorks plans to localize the existing Animal Jam apps for new territories and develop new apps and interactive experiences with the brand.

Nazara said The acquisition is funded out of internal accruals advanced as loan by Nazara Dubai and Nazara Technologies, Mauritius to the WildWorks Holdco, Inc. which in turn has advanced $10.40 million to WildWorks Acquisition Sub, Inc. It may be further noted that WildWorks, Inc. the surviving entity post the merger shall continue to be liable to WildWorks

Holdco, Inc. for an amount of $10.40 million.

Prabhudas Lilladher has a BUY rating on the stock with target at Rs 911, meaning a potential upside of 43 percent from current levels.

“We have increased our sales estimates by 2 percent/6 percent for FY23/FY24 respectively as we fine tune our assumptions for Esports and DataWrkz. Overall, we expect revenue/PAT CAGR of 39 percent/58 percent respectively over FY22-24 and believe the growth story remains intact,” the broker said.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Aug 30, 2022 10:23 am
Sections
ISO 27001 - BSI Assurance Mark