Nazara-backed Nodwin Gaming on Friday announced that its Singapore-based subsidiary has signed definitive agreements to increase its stake in Berlin-based Freaks 4U to 100% in tranches through a share swap deal.
Nodwin’s Singapore unit, which currently holds a 13.51% stake in Freaks 4U, will initially increase its existing stake in the latter to 57%, and the remaining 43% will be swapped at a later time, Nazara said in a stock exchange filing. The total deal is valued at Rs 271 crore ($32.6 million).
This acquisition will significantly enhance Nodwin’s capabilities, bringing in the expertise, experience and network of the Freaks 4U team and is expected to contribute to the Nazara-backed company’s revenues.
Since the acquisition of a minority stake in Freaks 4U in January 2024, Nodwin has been working with the company’s management on integration of the two businesses and evaluating the synergies they present. The two teams have already worked on jointly delivering projects such as the PUBG Mobile Global Open and Esports World Cup (EWC).
Based on the outcomes of this exercise and early traction on potential synergies, Nodwin and Freaks 4u have decided to proceed with this transaction.
In March, Nazara announced that it has planned to invest $100 million towards mergers and acquisitions (M&A) within the next 24 months. Through Nodwin, it also acquired Comic Con India, which hosts multiple pop cultural festivals targeting youth in India in January this year.
Nazara’s revenue from operations increased 4.3% to Rs 1,138 crore in FY24 from Rs 1,091 crore in FY23. The controlled cost and surge in other income helped Nazara post a 23% increase in its profit to Rs 75 crore in FY24 from Rs 61 crore in the previous fiscal year.
