Nazara Tech acquires skill gaming platform OpenPlay

Nazara Technologies said that that it has acquired 100% stake in Hyderabad-based skill gaming company OpenPlay for a total consideration of Rs 186.4 crore.

OpenPlay operates a multi-game consumer gaming platform under the Classic Games brand which hosts popular skill-based games such as fantasy sports, quiz, rummy and various other skill games. It operates highest standards of technology, game fairness, advance player protection, security, AML and advertising standards.

OpenPlay currently has an annualised gross gaming revenue run-rate of Rs 80 crore and is operating on EBIDTA positive margins. With its recent launch of influencer hosted skill gaming tournaments, the company is poised to grow its user base at rapid pace in coming quarters.

Manish Agarwal, CEO, Nazara, said: The OpenPlay acquisition offers an opportunity for Nazara to build a network of skill gaming destinations operating on one common tech platform under the proven leadership of Sreeram and his team at OpenPlay. Sreeram is a successful entrepreneur globally in online real money gaming and we are excited that he will be leading Nazara's growth in this sector.

OpenPlay is led by Sreeram Reddy Vanga who is a serial entrepreneur in the global online gaming industry. In his previous avatar, he founded and led CozyGames to become the second largest Bingo network in the UK before being acquired. Sreeram was also part of the early team at PartyGaming which went IPO on London Stock Exchange in 2005.

Sreeram Reddy Vanga commented: I'm excited to join the 'Friends of Nazara Network' and look forward to working closely with Nazara leadership and the Network to build India's largest vernacular social gaming and entertainment platform. Our technology complemented by Nazara's positioning in the gaming industry in India is the perfect combination for this endeavour.

The Friends of Nazara network comprises of established gaming companies in which Nazara holds majority stakes and works actively with existing founders and management teams to rapidly achieve scale. These companies include Nodwin Gaming and Sportskeeda in Esports Next Wave Multimedia, developer of World Cricket Championship (WCC), the largest mobile-based cricket simulation game and Paper Boat Apps, developers of popular gamified early learning app Kiddopia.

Nazara Technologies is one of the leading mobile games companies. It is India's leading diversified gaming and sports media platform with a presence across emerging and developed global markets such as Africa and North America, with offerings across the interactive gaming, eSports, and gamified early learning ecosystems.

The company's consolidated net profit stood at Rs 13.50 crore in Q1 June 2021 as compared to a net loss of Rs 21.70 crore in Q1 June 2020. Consolidated net sales soared 45% to Rs 131.20 crore in Q1 FY22 from Rs 90.50 crore in Q1 FY21.

The Nazara Technologies scrip rose 1.44% to end at Rs 1711 on Friday.

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