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2 min read | Updated on September 09, 2024, 13:52 IST
SUMMARY
Nazara Technologies has acquired 5,157 shares, representing 48.42% of the equity share capital of Paperboat, from the latter’s founding shareholders. The company has paid ₹225 crore to the founding shareholders out of the total cash consideration of ₹300 crore as agreed under a shareholder purchase agreement signed in July 2024.
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Nazara Technologies shares rose up to 3.26% to hit an intraday high of ₹949.95 per share on NSE on Monday.
Nazara Technologies informed bourses that the company, on September 6, acquired 5,157 shares, representing 48.42% of the equity share capital of Paperboat, from the latter’s founding shareholders.
The company has paid ₹225 crore to the founding shareholders out of the total cash consideration of ₹300 crore as agreed under a shareholder purchase agreement signed in July 2024, Nazara Tech said.
“The remaining balance shall be paid in the manner as outlined in the SPA and an update on the same will be provided in due course,” the company said.
Following the acquisition, Paperboat, which owns gamified learning app Kiddopia, has become a wholly-owned subsidiary of Nazara Technologies. Kiddopia Inc, the wholly-owned subsidiary of Paperboat, continues to remain a step-down subsidiary of the company, Nazara Tech informed the bourses.
Earlier in 2019, the gaming company had acquired a 50.91% stake in Paperboat for ₹83.5 crore.
Paperboat acquisition for scaling up gaming business
Nazara Technologies had earlier stated that the acquisition was part of efforts to scale up the gaming business. Founder Nitish Mittersain had stated that it would be the biggest revenue generator for the company in the coming years.
Paperboat is the developer and publisher of popular children’s digital gamified learning app ‘Kiddopia’ which is the top 3 grossing app for children between 2-8 years of age in the United States.
Nazara Tech will also consider merging Paperboat with the company at the appropriate time to bring home learning IP ‘Kiddopia’. The merger will allow Nazara to benefit from healthy cash flows that can be reinvested for organic as well as inorganic growth, a release had stated on July 19 while announcing the acquisition.
Nazara Technologies shares rose up to 3.26% to hit an intraday high of ₹949.95 per share on NSE on Monday. However, the stock pared some of early gains to trade 1.64% higher at ₹935 apiece on the NSE at 10:32 am.
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