Nazara Technologies share price slipped 12 percent intraday on June 18. The Rakesh Jhunjhunwala-backed firm on June 16 signed a binding term sheet to acquire a majority stake in Arrakis Tanitim Organizasyon Pazarlama San Tic Ltd Sti (Publishme), the largest mobile game publishing agency in the Middle East and Turkey.
Nazara will invest around Rs 20 crore to acquire a 69.82 percent stake by way of primary and secondary transaction through its subsidiary, the company said in a release.
A term sheet is a agreement, typically nonbinding, that broadly lays out the terms and conditions of an investment. It serves as a template for more detailed and legally binding documents.
"MENA is a key geography for us and this acquisition will help us in establishing ourselves as a key player in the region. We are excited to have someone with deep regional knowledge and capabilities like Özgür and his team join the ‘Friends of Nazara’ network"," said Nitish Mittersain, Founder & Jt MD at Nazara Technologies.
With the acquisition, Nazara has expanded its international footprint in the freemium segment, which will allow it to offers basic features free and charges a premium for advanced features.
The company will aim to build local execution capabilities cutting across key growth segments namely, freemium, gamified learning and esports.
The online gaming platform listed on exchanges on March 30, with the stock opening with at Rs 1,990, an 80.7 percent premium to the issue price of Rs 1,101, on the National Stock Exchange.
The company raised Rs 583 crore through its public issue that was subscribed 175.46 times during March 17-19.
It reported a consolidated profit of Rs 4.2 crore for the quarter ended March 2021 against a loss of Rs 7.02 crore in the year-ago quarter.
Revenue in Q4FY21 grew sharply by 41.7 percent to Rs 123.38 crore compared to the year-ago quarter.
At 1134 hours Nazara Technologies was quoting at Rs 1,521.55, down Rs 143.40, or 8.61 percent on the BSE.