Nazara Tech Shares: Shares of gaming company Nazara Technologies rose over 2 per cent on Tuesday morning after the company announced the acquisition of leading U.S. children’s interactive entertainment company WildWorks. Nazara will acquire 100 per cent of the company and its IP from existing shareholders in an all-cash transaction.
Founded in 2003, WildWorks is one of the most successful and established game studios focused on the children’s market for ages 8-12 and is the #1 Grossing Apps in its category. In the past decade, Wildworks’ mobile apps have attracted over 150 million players, and as a result of today’s deal, WildWorks is expected to expand into new products and territories in 2023 and beyond. Two of the original founders, CEO Clark Stacey and COO Jeff Amis, will remain with the company in their current positions and lead its next phase of growth as part of the “Friends of Nazara” network.
WildWorks’ revenues were $13.8 million in CY21 and $5.8 million in H1CY22, and EBITDA were $3.1 million in CY21 and $1.6 million in H1CY22, the release said. . In the past decade, Wildworks’ mobile apps have attracted over 150 million players, and as a result of today’s deal, WildWorks is expected to expand into new products and territories in 2023 and beyond.
Nitish Mittersain, founder and MD of Nazara, said: “With its strong brand presence and talented Utah-based development team, WildWorks enables us to solidify our leadership position in the gamified learning space for kids.”
He said WildWorks has earned the trust of millions of families through their approach to safe social gameplay in Animal Jam, and Nazara’s global capabilities will help bring those experiences to millions more.
Nazara Tech recently reported strong earnings for the April-June quarter with total revenue at Rs 223.1 crore, a 70 per cent growth from Rs 131.2 crore in the corresponding period last year. e-Sports contributed the most to the growth. The revenue for e-sports stood at Rs 102.3 crore, up 92 per cent from Rs 53 crore in the corresponding period a year ago.
The company has been on a buying spree of late. In August, the mobile gaming company said it would acquire a 100 per cent stake in Hyderabad-based skill gaming company OpenPlay Technologies for Rs 186.41 crore in one or more tranches from Sreeram Reddy Vanga and Unnati Management Consultants.
Last year in October, Nazara said it had invested Rs 83.5 crore in Paper Boat Apps, a Mumbai-based indie studio. The company has acquired a majority stake of 51 per cent at a pre-money valuation of Rs 154 crore. Paper Boat Apps is the creator and publisher of Kiddopia, a subscription-based preschool edutainment app.
Should you Invest in Nazara Tech?
Prabhudas Lilladher has a buy call on Nazara Technologies with a target price of Rs 911. The current market price of Nazara Technologies is Rs 644.9. The time period given by the analyst is one year when Nazara Technologies Ltd. price can reach the defined target.
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