Nazara Tech share zooms 9% on acquisition of Freaks 4U Gaming for Rs 271 cr

Nazara Technologies share rallies: Shares of Nazara Technologies climbed as much as 9 per cent to hit an intraday high of Rs 887.05 per share on Friday.

The uptick in share price came after Nazara Technologies said NODWIN Gaming will increase its ownership in leading European esports company Freaks 4U Gaming to 100 per cent through a share swap valued at Rs 271 crore (Euro 30.3 million).

NODWIN Gaming is a material subsidiary of Nazara Technologies Limited.

In an exchange filing, Nazara Technologies said, “NODWIN Gaming Private Limited (A material subsidiary of Nazara Technologies Limited) announced today that its Singapore based subsidiary, NODWIN Gaming International Pte. Ltd, (NODWIN Pte) has signed definitive agreements to increase its existing 13.51 per cent stake in Freaks 4U Gaming GmbH, a Berlin-based Global fullservice gaming and esports agency to 100 per cent in tranches through a share swap valued at upto Rs 271 crore (Euro 30.3 million).”

 

According to the statement by Nazara Technologies, NODWIN Pte plans to initially increase its stake in Freaks 4U Gaming to 57 per cent, with an option to later acquire the remaining 43 per cent held by founders Michael Haenisch, Matthias Remmert, and Jens Enders. Existing investors CoInvestor FRE and Game.Fin S.R.L of Freaks 4U Gaming will become shareholders of NODWIN Pte.

Freaks 4U Gaming offers a wide range of agency services and top-tier solutions to brands and publishers, generating approximately Rs 223 crore (Euro 26.9 mn unaudited) in 2023. 

This acquisition is expected to notably enhance NODWIN Gaming's capabilities by integrating the expertise, experience, and network of the Freaks 4U Gaming team, contributing substantially to future revenues.

Following the minority stake acquisition in January 2024, Nazara Technologies said, NODWIN has been collaborating closely with Freaks 4U Gaming on business integration and identifying synergies. They have successfully collaborated on major projects like the PUBG Mobile Global Open and Esports World Cup, exploring new business opportunities together. Based on positive outcomes and early synergies, both entities have decided to proceed with the acquisition.

This strategic move is set to strengthen NODWIN Gaming's presence in developed markets and enhance its capabilities in PC gaming and publishing support services. Integrating Freaks 4U Gaming’s capabilities and market presence is expected to drive substantial revenue growth. 

It complements NODWIN Gaming's strong execution in emerging markets, establishing a global delivery model in the esports sector.

Founded in 2014 by Akshat Rathee and Gautam Virk, NODWIN Gaming is valued at $349 million as of 2023 and has established a global footprint in South Asia, Singapore, the Middle East, and Turkey. The company focuses on developing and monetizing gaming and esports IPs, engaging with esports athletes, teams, and content creators. Notable investors include Nazara, KRAFTON Inc, Sony Group Corporation, and JetSynthesys. NODWIN Gaming is particularly strong in mobile gaming and esports, catering to the youth demographic and expanding its market in digital entertainment.

At 2:34 PM, shares of Nazara Technologies were trading nearly 7 per cent higher at Rs 870.45 per share. In comparison, BSE Sensex was trading 0.04 per cent lower at 79,211.90 levels.