Nazara To Snap Up UK-Based IP Gaming Studio Fusebox For $27.2 Mn

Gaming major Nazara Technologies will be acquiring UK-based IP gaming studio Fusebox Games for INR 228 Cr ($27.2 Mn) in an all-cash deal.

Nazara’s founder and chief executive Nitish Mittersain said,  “We see a large opportunity in building an IP based global gaming business that benefits from our core base in India where we can support global studios through enhanced user acquisition strategies, data analytics, live operations and new initiatives such as implementing our in-house AI playbook.”

Fusebox operates IP driven interactive story games that are primarily monetized through in-app purchases. The games primarily target developed markets including US, UK, Australia and Canada, Switzerland, Sweden, Denmark, Norway, New Zealand among others.

The studio had developed an interactive story game Love Island based on a popular British TV show of the same name and claims to be developing new games based on popular global TV IPs.

In the calendar year 2023 (CY23), Fusebox reported a revenue of INR 87.5 Cr with an EBITDA of INR 11.7 Cr. For the January – July 2024 period, the studio posted a revenue of INR 116.6 Cr with an EBITDA of around INR 33.3 Cr.

This comes at a time when the company is looking to ramp up its gaming portfolio and expand its global presence through strategic acquisitions. In recent months, Nazara has been actively acquiring stakes in various gaming and esports companies.

For instance, in May, Nazara acquired the remaining 28.12% stake in Nextwave Multimedia Private Limited, the developers of the mobile cricket game franchise World Cricket Championship, for INR 21.6 Cr. This acquisition increased Nazara’s stake in Nextwave to 100%.

Prior to that in April, Nazara picked up an 8.5% stake in Web3 gaming platform Circle of Games (COG) for about INR 4.17 Cr. The company has also been expanding its presence in the esports sector, with its subsidiary NODWIN Gaming acquiring a 100% stake in Comic Con India for INR 55 Cr earlier this year.

Nazara’s consolidated net profit declined 98% to INR 18 Lakh in the fourth quarter of the financial year 2023-24 (FY24) from INR 9.4 Cr in the year-ago quarter.

Sequentially, the company’s profit also saw a huge decline from INR 29.5 Cr in Q3 FY24.

The company has also been expanding its global footprint. At the onset of this month, Nazara announced the incorporation of a new wholly-owned subsidiary, Nazara Technologies UK Ltd, in the United Kingdom with an authorised share capital of GBP 100 (around INR 10,683).