Head Digital Works acquires Adda52 parent Deltatech Gaming for Rs 491 cr

Online skill gaming company Head Digital Works, which operates A23 Rummy and A23 Poker, on Friday said it will acquire Deltatech Gaming, the company behind the online poker platform Adda52, for Rs 491 crore.

 

The acquisition will be executed in two phases.

 

The A23-operator will acquire 51 per cent of Deltatech Gaming, followed by a merger of the company into Head Digital Works. DeltaCorp will hold a 5.7 per cent stake in Head Digital Works following the merger.

 

The company expects the merged entity to expand its foothold in the online skill gaming market in the country.

 

“This acquisition brings together two of India’s biggest skill-gaming platforms, aiming to deliver an unparalleled gaming experience and foster innovation in the online poker space. By leveraging Adda52’s expertise and A23’s technological capabilities, the combined entity is poised to set new industry standards and accelerate growth in the Indian online gaming market,” Head Digital Works said in a statement.

 

Delta Corp had acquired Gauss Network, which owns Adda52 in a part cash, part equity deal in 2016. The value of the deal was reportedly over ₹150 crore.

 

Head Digital Works claims to offer online rummy and poker games to over 75 million users.

 

A23 launched its online poker platform in October 2024.

 

“By combining our strengths, we aim to expand our poker business, accelerate growth through new avenues and create India’s most comprehensive and diversified skill-gaming platform for our customers,” said Deepak Gullapalli, founder and chief executive officer (CEO), Head Digital Works.

 

This will be the second largest deal in the online rummy and poker gaming segment. In September, Nazara Technologies bought a significant stake in Moonshine Technology (MTPL), the parent company of PokerBaazi, for ₹982 crore. Nazara said it will acquire 47.7 per cent in MTPL for ₹832 crore through a secondary transaction while also injecting Rs 150 crore in primary capital via compulsory convertible preference shares.

 

The acquisition of PokerBaazi was the largest M&A in the domestic gaming segment.