Nazara Technologies Acquires Paper Boat Apps in Rs 300 Cr Deal

Nazara Technologies, a media and gaming company, has declared the purchase of an additional 48.42% ownership in its subsidiary, Paper Boat Apps, for a sum of Rs 300 crore.

Paper Boat Apps is the creator and distributor of the educational app 'Kiddopia,' specifically created for children aged 2 to 8 years old. The United States accounts for more than 90% of its business.

Nazara is considering merging Paper Boat Apps with its company to incorporate Kiddopia into its platform. This would enable Nazara to take advantage of strong cash flows that can be reinvested for both organic and inorganic expansion.

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In 2019, Nazara purchased a majority interest of 50.91% in Paper Boat Apps. In FY24, Paper Boat Apps had a consolidated revenue of Rs 219.4 crore and an Ebitda of Rs 56.1 crore. The company also had a net cash balance of Rs 155.74 crore.

Nazara has conducted multiple acquisitions, primarily through its esports and events division, Nodwin. These purchases include Comic Con India, a company specialising in events, Publishme, a marketing organisation with a focus on West Asia and Turkey, Branded, an events company based in Singapore, and Ninja Global, a Turkish company specialising in esports and gaming.

Nitish Mittersain, CEO and joint managing director of Nazara Technologies, said: “Kiddopia has been one of our most popular IPs in the kids’ space and we have now increased our holdings to 100% by buying out the founders. Now we will be growing the company from this point because we think the potential for Kiddopia is much larger than what we have currently achieved. With this investment, we hope to take it to the next level, ”

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