Nazara Tech Stocks: Shares of gaming company Nazara Technologies rose more than 2 percent Tuesday morning after the company announced the acquisition of leading US interactive entertainment company for kids, WildWorks. Nazara will acquire 100 percent of the company and its IP from existing shareholders in a cash transaction.
Founded in 2003, WildWorks is one of the most successful and established game studios targeting the children’s market for ages 8-12 and is the top-grossing apps in its category. Over the past decade, Wildworks’ mobile apps have attracted more than 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 the 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 was $3.1 million in CY21 and $1.6 million in H1CY22, the release said. . Over the past decade, Wildworks’ mobile apps have attracted more than 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 development team in Utah, WildWorks enables us to solidify our leadership position in the gamified learning space for kids.”
He said WildWorks has won the trust of millions of families through its approach to safe social gameplay in Animal Jam, and Nazara’s global capabilities will take those experiences to millions more.
Nazara Tech recently reported strong revenues for the April-June quarter with total revenue of Rs 223.1 crore, up 70 percent from Rs 131.2 crore in the corresponding period last year. e-Sports contributed the most to the growth. E-sports revenue was Rs 102.3 crore, up 92 percent from Rs 53 crore in the corresponding period a year ago.
The company has been very busy lately. In August, the mobile gaming company said it would acquire a 100 percent stake in Hyderabad-based skills gaming company OpenPlay Technologies for Rs 186.41 crore in one or more tranches from Sreeram Reddy Vanga and Unnati Management Consultants.
Last October, Nazara said it had invested Rs 83.5 crore in Paper Boat Apps, an indie studio in Mumbai. The company has acquired a 51 percent majority stake 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 quoted by the analyst is one year when the price of Nazara Technologies Ltd. achieve the defined goal.
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