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Nazara Tech gains after acquisition

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Last Updated : Aug 30 2022 | 10:16 AM IST

Nazara Technologies rose 1.64% to Rs 641.05 after the company announced the acquisition of leading U.S. children's interactive entertainment company WildWorks.

Nazara will acquire 100% of the company and its IP from existing shareholders in an all-cash transaction.

The aggregate cost for the proposed acquisition is $10.40 million, which is being paid in cash to the creditors of the WildWorks, Inc. at closing. The present stockholders of the WildWorks, Inc. will not be receiving any consideration for the proposed acquisition.

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.

Founded in 2003, WildWorks is one of the most successful and established game studios focused on the children's market for ages 8-12 and is the #1 Grossing Apps in its category. 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 and lead its next phase of growth as part of the "Friends of Nazara" network.

"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. Successful brand partnerships like Tag with Ryan also showcase the potential for leveraging the WildWorks platform in new categories."

"With the ubiquity of connected mobile devices among kids, parents are recognizing that the quality of a child's screen time is as vital to monitor as the quantity," Mittersain observed. "WildWorks has earned the trust of millions of families through their approach to safe social gameplay in Animal Jam, and Nazara's global capabilities will help bring those experiences to millions more."

Nazara Technologies is a leading India-based, diversified gaming & sports media platform with presence in India and across emerging & developed global markets such as Africa and North America. It has offerings across the interactive gaming, eSports, ad-tech and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin, PublishMe and Sportskeeda in eSports and eSports media, OpenPlay, Halaplay and Qunami in skill-based, fantasy and trivia games, and Datawrkz in digital ad-tech.

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Nazara Technologies' consolidated net profit rose 22.2% to Rs 16.50 crore on 70% jump in net sales to Rs 223.10 crore in Q1 FY23 over Q1 FY22.

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First Published: Aug 30 2022 | 9:46 AM IST

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