Bengaluru: Gaming and sports media platform, Nazara Technologies Ltd. has made its first acquisition after it listed on exchanges in March this year.
The company has signed a binding term sheet to accumulate West Asia- and Turkey-based mobile gaming publishing agency, Publishme during a primary and secondary purchase worth $2.7 million.
As a part of the deal, Nazara will acquire 69.82% of the corporate, because it looks to strengthen its presence within the Middle East and North Africa (MENA) region.
“We operate across key gaming segments of premium Esports and gamified learning and have a robust presence in North America and India. Now if any of those entities will need to expand their footprint into newer geographies, they might wish to acquire execution capabilities. And if we’ve to expand our business within the MENA region we’ll need publishing and hence the Publishme acquisition helps us during this strategic growth,” said Manish Agarwal, chief military officer, Nazara Technologies, in interaction with Mint.
“And for the content to succeed one has got to understand the local cultural resonance, whether it’s for the content itself or for marketing of the content,” Agarwal added.
Publishme may be a full-service games marketing and publishing agency that works extensively with gaming companies and makes in Turkey and MENA region. at the present, the company’s clientele includes Garena, My. Games, and Lokum Games, among others.
“We are delighted to hitch Nazara and lead the company’s foray within the MENA region. MENA is one of the fastest-growing gaming markets, with an estimated market size of $4.8 billion, and has over 160 million gamers within the region (of which 100mn are mobile gamers). Our alliance with Nazara offers a singular blend of the network, global reach, and native capabilities to further the expansion of the gaming industry within the region. With this, Publishme will become a full-fledged publisher within the MENA region,” said Özgür Özalp, CEO, Publishme.
At present, Nazara owns a majority stake in several companies — Paper Boat Apps, a kid’s gamified learning platform; Nodwin Gaming, an Esports gaming company; Absolute Sports, owner of multi-sports content platform Sportskeeda; Nextwave Multimedia, developer of cricket simulation game World Cricket Championship (WCC); alongside Halaplay, a fantasy gaming platform, and Sports Unity, creator of quiz game ‘Qunami’.
More than 80% of Nazara’s revenues currently come from North America and Indian geographies, added Agarwal.
“MENA may be key geography for us and this acquisition will help us in establishing ourselves as a key player within the region. We are excited to possess someone with deep regional knowledge and capabilities like Özgür and his team joins the ‘Friends of Nazara’ network,” said Nitish Mittersain, founder and joint director at Nazara Technologies.
For the fiscal year ending March 2021, Nazara’s revenues surged 83% to ₹454 crores. While gamified early learning and Esports together contributed 76% to total revenues, the corporate reported a profit at the earnings before interest, taxes, depreciation, and amortization (Ebitda) level worth ₹45 crores against a loss of ₹5.6 crores last financial year.