 "Deal structuring eased, teething troubles remain")
Pune-based hospitality firm Delta Corp on Friday announced that it has acquired Gauss Network, which owns Adda52.com, India’s leading poker site, in a part cash, part equity deal. The value of the deal, according to reports, is over Rs 150 crore.
In its disclosure to the stock exchanges, Delta Corp said that with this transaction, which complements the gaming business, “Delta will widen its business horizon and increase its overall footprint, thereby consolidating its overall leadership position”. With Gauss Network within its fold, Delta Corp will instantly gain a leadership position in the online poker space.
The acquisition will provide great business and growth synergies as well as financial strength and flexibility. It will help expand the customer base and market penetration, said the company in a release.
Delta Corp Group CFO Hardik Dhebar said, “The online space will not cannibalise our existing business. The market is big enough to accommodate both the segments. Globally, the two coexist.” He added, “The consolidated revenue of Gauss Network in FY16 was Rs 47 crore and EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins were in the 30-35 per cent range.”
The company is debt-free and is cash generating.
Delta Corp registered revenue of Rs 108.65 crore in Q1 2016-17 — a growth of 34.6 per cent over the same quarter in the last financial year.
Delta Corp is the only listed company in the gaming and hospitality segment in India.
