Nazara Technologies Ltd, an Indian gaming company, has announced plans to acquire a controlling stake in two Spanish gaming firms, Bluetile Games S.L. and BestPlay Systems. The initial investment will be approximately $100.3 million for a 50% stake, with the total acquisition cost expected to reach around $340 million, including performance-based payouts.
The acquisition will be executed through Nazara's UK subsidiary, allowing the company to establish a framework for full ownership. This framework includes a call option for Nazara and a put option for the selling shareholders, both exercisable by 2028.
Financial Details
- Initial 50% stake: $100.3 million
- Estimated cost for remaining 50%: $130-140 million
- Performance-linked earn-out payments: approximately $98.2 million
The first tranche of the investment will be funded through Nazara's reserves, which currently stand at around $100 million. The remaining payment is expected to be financed through the operational cash flows generated by Bluetile and BestPlay.
Company Profiles
Bluetile Games specializes in casual and social puzzle games, boasting 375 million downloads and 22 million monthly active users across its titles. BestPlay, on the other hand, operates an engagement platform that adds an additional 2.2 million monthly active users.
Future Expectations
Nazara anticipates that the first 50% stake will be acquired within two months, with revenue contributions expected to start reflecting in the first quarter of fiscal 2027. The company aims to increase its EBITDA margin to 18-20% by the completion of the acquisition in 2028.
This acquisition marks Nazara's largest deal to date, building on its strategy of integrating gaming studios into its portfolio. The company has previously completed 17 acquisitions across six countries, enhancing its presence in the global gaming market.
