Nazara Technologies said that this stake will be bought in two phases. 33 percent stake will be acquired in the first phase and the remaining 22 percent in the second phase.
Nazara Technologies, a gaming and sports media company invested by Rakesh Jhunjhunwala, will buy 55 percent stake in programmatic advertising and monetization company Datawrkz through an investment of about Rs 124 crore. The company told the stock exchange that in this deal, Datawrkz has been valued at Rs 225 crore, which is related to the EBITDA performance for the calendar year 2022. The Board has approved Strategic Investment by way of acquisition of 37,498 equity shares. Najara said that this stake will be bought in two phases. 33 percent stake will be acquired in the first phase and the remaining 22 percent in the second phase.
The stake will be bought in two phases
The shares will be bought from existing shareholders Senthil Govindan, Karthigha Dhanbalan, K Arunprabu, Mayank Khirwadkar and Vishal Tukarnam Gairale. In the first tranche, Nazara will acquire 33 per cent stake for Rs 60 crore during the first quarter of FY 2022-23. Similarly, an option has been kept to acquire an additional 22 per cent stake in the second installment, which is expected to close in the fourth quarter of FY 2022-23.
In a statement, Nazara said that out of Rs 60 crore due, Rs 35 crore would be partly paid in cash, while the remaining Rs 25 crore would be paid either in cash or by exchange of shares in the first installment by April 2022. With this transaction, Dataworks wants to establish itself as a major player in gaming.
Company related details
- Datawrkz company was founded by Senthil Govindan in the year 2013.
- Datawrkz is a global advertising technology firm focused on accelerating user and revenue growth for clients through digital advertising.
- The company has offices in the US, Singapore and India. The firm operates as an independent trading desk empowering digital media strategy, planning and execution.
- In the calendar year 2021, the combined revenue of Datawrkz stood at Rs 90.7 crore (approximately USD 12.1 million).
- Over the years, Nazara has acquired several companies and strengthened its position in the esports, interactive gaming and gamified early learning space with its ‘Friends of Nazara’ network.
Rakesh Jhunjhunwala’s stake in Nazara Technologies
As per the BSE September 2021 shareholding pattern, Rakesh Jhunjhunwala holds a total of 32,94,310 shares in gaming and tech company Nazara Technologies. The corporate filings regarding the December shareholding pattern have not been updated by the company yet. According to Trendline, the value of the shares of Big Bull as on January 18, 2022 is Rs 798.3 crore.