 "Nodwin Gaming to increase its ownership in Freaks 4U in Rs 271 cr deal")
Nodwin Gaming Private Limited (a material subsidiary of Nazara Technologies Limited) said on Friday that its Singapore-based subsidiary, Nodwin Gaming International Pte. Ltd, has signed definitive agreements to increase its existing 13.51 per cent stake in Freaks 4U Gaming GmbH, a Berlin-based global full-service gaming and esports agency, to 100 per cent in tranches through a share swap valued at up to Rs 271 crore (Euro 30.3 million).
Nodwin Pte will initially increase its existing stake in Freaks 4U Gaming to 57 per cent, and the remaining 43 per cent held by the founders Michael Haenisch, Matthias Remmert, and Jens Enders will be swapped at a later time at its option. Existing investors of Freaks 4U Gaming (Co-investor FRE and Game.Fin S.R.L) will become shareholders of Nodwin Pte.
"This acquisition is a pivotal step in our global growth strategy,” said Akshat Rathee, co-founder of Nodwin Gaming. “By integrating Freaks 4U Gaming’s expertise and resources, we are poised to deliver unparalleled services and expand our global footprint in the gaming and esports industries.”
Freaks 4U Gaming offers a multitude of agency services and solutions to brands and publishers and generated Rs 223 crore (Euro 26.9 million unaudited) in 2023. This acquisition will significantly enhance Nodwin Gaming's capabilities, bringing in the expertise, experience, and network of the Freaks 4U Gaming team. It is also expected to contribute materially to Nodwin’s revenues going forward.
"With our shared vision and ambition, we look forward to driving our global expansion while spearheading innovation and growth for gaming and esports,” said Michael Haenisch, chief executive officer, Freaks 4U Gaming.
Since the acquisition of a minority stake in Freaks 4U Gaming in January 2024, Nodwin has been working with the Freaks 4U Gaming management on the integration of the two businesses and evaluating the synergies they present. The two teams have already worked on jointly delivering top projects such as the PUBG Mobile Global Open and Esports World Cup (EWC) and have jointly explored new business vertical opportunities. Based on the outcomes of this exercise and early traction on potential synergies, Nodwin Gaming and Freaks 4U Gaming have decided to proceed with this transaction.
This move is set to bolster Nodwin Gaming’s access to developed markets. It would also help in execution and planning capabilities in PC gaming and publishing support services. It will complement Nodwin Gaming's strong execution capabilities in emerging markets, enabling the establishment of a global delivery model.