Mumbai, Jan 18: Diversified gaming and sports media company Nazara Technologies, on Tuesday, said it has entered into an agreement with Datawrkz to acquire 55 per cent in the company.
In a regulatory filing, the company said, …it has entered an agreement to acquire a 55 per cent stake in programmatic advertising and monetization company Datawrkz valuing the company up to Rs 225 crore (approximately USD 30 million) linked to CY 22 EBITDA performance.?
Under the agreement, Nazara will acquire a 33 per cent stake for Rs 60 crore in the first tranche. Out of the Rs 60 crore payable, Rs 35 crore will be partly payable in cash and the balance consideration of Rs 25 crore will be paid either in cash or swap of shares in the first tranche by April this year, the company said.
Nazara reserves an option to acquire an additional 22 per cent in the second tranche that is expected to close in Q4 FY2023, it said.
This agreement with Datawrkz tech offerings will enhance the in-house capabilities of Nazara for optimizing its customer acquisition spends as well as enhance yields on ad monetization of its large consumer base, the company said, adding that it will also enable Datawrkz to establish itself as a key player in gaming, covering both demand and supply side offerings for the gaming ecosystem in the US and India.
We, at Nazara, are looking to build strong gaming ad tech offerings globally with the partnership with Datawrkz. We strongly believe that growth of gaming focused ad tech will be exponential in the coming decade across geographies with the growth of gamers and game publishers across freemium, web3.0 and skill based real money gaming, Nazara Technologies CEO Manish Agarwal said.
He further said that ad-tech companies with deep data processing capabilities and first party data ownership will emerge as winners in gaming focused ad tech and will help Datawrkz to create value for itself as well as for Nazara shareholders.
In the past, Nazara has acquired a majority stake in Nodwin Gaming, Next Wave Multimedia, Sportskeeda, Paper Boat Apps and OpenPlay.
Commenting on the development, Datawrkz Founder Senthil Govindan said, We had started this company with a vision to disrupt the digital advertising space.
Datawrkz was already on a fast track to achieve our objective with rapid growth and satisfied clients around the world. Through our partnership with Nazara, I see our pace accelerating further.
(UNI)
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