Listed media and gaming firm Nazara Technologies said that it acquired the remaining 48.42% stake it did not hold in Paper Boat Apps for Rs 300 crore, making it a wholly owned subsidiary.
Nazara acquired the stake from Paper Boat Apps’ founders in cash and will make the payment in tranches, the company said in a stock exchange filing.
Paper Boat Apps is the developer and publisher of the gamified learning app ‘Kiddopia,’ which is designed for children in the age group of 2-8 years. More than 90% of its business comes from the US.
Nazara is exploring plans to merge Paper Boat Apps into the company and integrate Kiddopia with its platform, allowing it to benefit from healthy cash flows that could be reinvested for organic and inorganic growth, it said.
Nazara first acquired a 50.91% stake in Paper Boat Apps in 2019. For FY24, Paper Boat Apps posted a consolidated revenue of Rs 219.4 crore and an earnings before interest, tax, depreciation, and amortisation (Ebitda) of Rs 56.1 crore, with a net cash balance of Rs 155.74 crore.
“Kiddopia has been one of our most popular IPs in the kids’ space and we have now increased our holdings to 100% by buying out the founders. Now we will be growing the company from this point because we think the potential for Kiddopia is much larger than what we have currently achieved. With this investment, we hope to take it to the next level,” Nitish Mittersain, Nazara’s chief executive and joint managing director, told ET.
“In terms of additional acquisitions, Nazara is well positioned to acquire gaming studios and we are in advanced conversations with many other studios as well. One of our core focuses is to acquire gaming studios in India and also outside of India,” he added.
In the past few months, Nazara has made several acquisitions, particularly through its esports and events arm, Nodwin, including events firm Comic Con India, West Asia and Turkey-focused marketing firm Publishme, Singapore-based events firm Branded, and Turkish esports and gaming firm Ninja Global.
ET reported on March 13 that Nazara was setting aside about Rs 830 crore for mergers and acquisitions in markets like India, Europe, and North America.
For FY24, Nazara’s total revenue increased by 4.3% to Rs 1,138 crore. Profit after tax from continued operations rose 41% to Rs 89 crore.
“Following the majority acquisition by Nazara, Kiddopia has scaled tremendously, and we are pleased to see it find a permanent home within Nazara. We believe that Kiddopia has significant potential for future growth, and Nazara is well-positioned to elevate it to the next level,” said Anupam Dhanuka, promoter of Paper Boat Apps.
Source: Economic Times