Nazara Technologies is buying Fusebox Games, a United Kingdom-based gaming studio, for Rs 228 crore ($27.2 million) in an all-cash deal, the gaming and sport media company said on August 8.
This deal is part of the company's efforts to boost its gaming business, which founder Nitish Mittersain said would be the biggest revenue generator for the diversified gaming and sports media firm in the coming years.
"We see a large opportunity in building an IP-based global gaming business that benefits from our core base in India where we can support global studios through enhanced user acquisition strategies, data analytics, live operations and new initiatives such as implementing our in-house AI playbook," Mittersain said in a statement.
Fusebox Games operates intellectual property (IP)-driven interactive story games and has published a title called Love Island. The company is also developing new games based on popular global television IPs, Nazara said.
The studio primarily targets developed markets including the United States, the United Kingdom, Australia and Canada, Switzerland, Sweden, Denmark, Norway and New Zealand.
In the calendar year 2023, Fusebox reported a revenue of Rs 87.5 crore ($10.4 million) with an EBITDA of Rs 11.7 crore ($1.4 million). For the January-July 2024 period, the studio generated a revenue of Rs 116.6 crore ($13.9 million) with an EBITDA of around Rs 33 crore ($4 million).
Fusebox primarily monetises these games through in-app purchases, which accounted for around 92 percent of its revenue for the January-July period.
The deal comes on heels of Nazara Technologies hiking its stake in Kiddopia parent Paperboat Apps to 100 percent, by picking up the remaining 48.42 percent stake for Rs 300 crore.
It also picked up a 100 percent stake in mobile gaming subsidiary Nextwave Multimedia by buying the remaining 28.12 percent from founder shareholders PR Rajendran, R Kalpana and PR Jayashree.
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