Nazara Technologies Acquires UK's Fusebox Games for $27.2 Million

Nazara announces acquisition of UK based Fusebox Games for INR 228 crores (US$ 27.2 million)

Popular IP based games of Fusebox to boost Nazara's core gaming segment Nazara Technologies Limited (BSE: 543280) (NSE: NAZARA), India's only publicly listed diversified gaming and sports media company, announced the acquisition of Fusebox Games Limited ("Fusebox"), a well-established IP based gaming studio in the United Kingdom. Nazara will purchase Fusebox for INR 228 Cr (US$27.2 million) in an all-cash transaction. Fusebox publishes a successful interactive story game 'Love Island' and is developing new games based on popular global TV IPs. In CY23, the company reported revenues of INR 87.5 Cr (US$10.4 million) with an EBITDA of INR 11.7 Cr (US$1.4 million). During CY24, Fusebox has demonstrated strong growth with YTD revenues (Jan - July'24) at INR 116.6 Cr (US$13.9 million) with an EBITDA of ~INR 33.3 Cr (EBITDA of US$4.0 million) * Fusebox operates IP driven interactive story games that are primarily monetized through in-app purchases, which accounted for ~92% of the total revenues in YTD July'24. The games primarily target developed markets including US, UK, Australia and Canada, Switzerland, Sweden, Denmark, Norway, New Zealand among others. The company has 30 employees primary based in the United Kingdom. Nitish Mittersain, Founder & CEO of Nazara said, "We see a large opportunity in building an IP based global gaming business that benefits from our core base in India where we can support global studios through enhanced user acquisition strategies, data analytics, live operations and new initiatives such as implementing our in-house AI playbook. Many of our existing IP's are good examples of this strategy and we are happy to join forces with the talented team at Fusebox as we continue to build Nazara into a global gaming company of meaningful scale" About Nazara Technologies Ltd.: Nazara is India's only listed gaming and esports company, with majority ownership of several leading gaming and esports brands with presence in India, the US, and other global markets. In esports, Nazara has India's leading esports platform NODWIN Gaming and Sportskeeda/Pro Football Network in the sports media space. Nazara's offerings in the interactive gaming segment include gamified early learning ecosystems like Kiddopia and Animal Jam, India's most popular cricket simulation franchise, World Cricket Championship (WCC), and a wide portfolio of casual games distributed through telco partnerships in many emerging markets. Additionally, Nazara controls Datawrkz, a digital ad tech company supporting its portfolio companies and external clients with demand-side user acquisition and supply-side ad monetization services. Website: https://www.nazara.com/ About Fusebox Fusebox is a mobile free-to-play studio based in the UK that specializes in interactive story games. The studio has a proven pedigree of delivering narrative-based content, with its flagship title Love Island. The business has grown into the genre leader for IP-based interactive story games, maintains strong relationships with global rights holders and has a reputation for delivering high-quality content that unlocks additional value and revenue streams for brands. Advisors: Nazara Technologies has been advised by Jerome Merchant + Partners as legal advisors, KPMG as financial due diligence advisors and Taxedge as tax advisors for this transaction.

Nazara buys UK's Fusebox Games in $27-million all-cash deal

Nazara Technologies acquired UK gaming studio Fusebox Games for Rs 228 crore. Fusebox, recognized for 'Love Island,' made Rs 116 crore in revenue and Rs 33 crore in Ebitda by July 2024. Nazara plans to use its strengths in user acquisition and data analytics to expand its gaming offerings while targeting global markets.Listed media and gaming firm Nazara Technologies said Thursday it has acquired UK-based gaming studio Fusebox Games for Rs 228 crore ($27.2 million) in an all-cash transaction. Fusebox makes story-based games like 'Love Island' and is currently working on other games based on TV show intellectual properties (IPs), Nazara said in a statement. The studio earned Rs 87 crore in revenue in 2023, with earnings before interest, taxes, depreciation and amortisation (Ebitda) of Rs 11 crore. As of July 2024, Fusebox made Rs 116 crore in revenue in the calendar year with an Ebitda of about Rs 33 crore, Nazara added. Nazara sees a "large opportunity" in building IP-based games and benefitting from its core user base in India in a system where it can help global studios with user acquisition strategies, data analytics, live operations and AI solutions, founder and chief executive Nitish Mittersain said. "Many of our existing IPs are good examples of this strategy, and we are happy to join forces with the talented team at Fusebox as we continue to build Nazara into a global gaming company of meaningful scale," he added. Fusebox has a 30-member team based in the UK and primarily makes its money through in-app purchases, which accounted for 92% of the total revenues so far this year. The firm targets audiences in markets like the US, UK, Australia and Canada, Switzerland, Sweden, Denmark, Norway and New Zealand. On August 6, ET reported on Nazara's unit Absolute Sports acquiring all assets of US-based gaming content firm Deltias Gaming for Rs 7.5 crore. Absolute Sports also runs Sportskeeda and Pro Football Network, which are among the most popular gaming and sports news sites under Nazara. 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.

Nazara To Snap Up UK-Based IP Gaming Studio Fusebox For $27.2 Mn

This acquisition is part of Nazara's strategy to grow its gaming and esports presence, following recent stakes in Nextwave Multimedia and Circle of Games, despite a decline in net profit in Q4 FY24. Gaming major Nazara Technologies will be acquiring UK-based IP gaming studio Fusebox Games for INR 228 Cr ($27.2 Mn) in an all-cash deal. Nazara's founder and chief executive Nitish Mittersain said, "We see a large opportunity in building an IP based global gaming business that benefits from our core base in India where we can support global studios through enhanced user acquisition strategies, data analytics, live operations and new initiatives such as implementing our in-house AI playbook." Fusebox operates IP driven interactive story games that are primarily monetized through in-app purchases. The games primarily target developed markets including US, UK, Australia and Canada, Switzerland, Sweden, Denmark, Norway, New Zealand among others. The studio had developed an interactive story game Love Island based on a popular British TV show of the same name and claims to be developing new games based on popular global TV IPs. In the calendar year 2023 (CY23), Fusebox reported revenues of INR 87.5 Cr with an EBITDA of INR 11.7 Cr. For the January - July 2024 period, the studio logged revenue of INR 116.6 Cr with an EBITDA of around INR 33.3 Cr. This comes at a time when the company is looking to ramp up its gaming portfolio and expand its global presence through strategic acquisitions. In recent months, Nazara has been actively acquiring stakes in various gaming and esports companies. For instance, in May, Nazara acquired the remaining 28.12% stake in Nextwave Multimedia Private Limited, the developers of the mobile cricket game franchise World Cricket Championship, for INR 21.6 Cr. This acquisition increased Nazara's stake in Nextwave to 100%. Prior to that in April, Nazara picked up an 8.5% stake in Web3 gaming platform Circle of Games (COG) for about INR 4.17 Cr. The company has also been expanding its presence in the esports sector, with its subsidiary NODWIN Gaming acquiring a 100% stake in Comic Con India for INR 55 Cr earlier this year. Nazara's consolidated net profit declined 98% to INR 18 Lakh in the fourth quarter of the financial year 2023-24 (FY24) from INR 9.4 Cr in the year-ago quarter. Sequentially, the company's profit also saw a huge decline from INR 29.5 Cr in Q3 FY24. The company has also been expanding its global footprint. At the onset of this month, Nazara announced the incorporation of a new wholly-owned subsidiary, Nazara Technologies UK Ltd, in the United Kingdom with an authorised share capital of GBP 100 (around INR 10,683).

Gaming major Nazara Tech buys UK-based Fusebox Games for Rs 228 cr

According to the release, during calendar year 2024, Fusebox demonstrated strong growth with year-to-date revenue (January - July) at Rs 116.6 crore with an EBITDA of Rs 33.3 crore. "We see a large opportunity in building an IP based global gaming business that benefits from our core base in India where we can support global studios through enhanced user acquisition strategies, data analytics, live operations and new initiatives such as implementing our in-house AI playbook." "Many of our existing IPs are good examples of this strategy and we are happy to join forces with the talented team at Fusebox as we continue to build Nazara into a global gaming company of meaningful scale," Nitish Mittersain, Founder and CEO of Nazara said.