Merger and Acquisition

Nazara Technologies Acquires UK-Based Fusebox Games for ₹228 Crores

• ByStartupStory     |    August 9, 2024

Nazara Technologies, a leading diversified gaming and sports media company, has announced its acquisition of Fusebox Games, a UK-based IP-driven gaming studio, in a deal valued at ₹228 crores (US$27.2 million). The acquisition will be an all-cash transaction, further expanding Nazara’s global footprint in the interactive gaming industry.

Fusebox Games, known for developing games based on popular global TV intellectual properties (IPs), has shown remarkable growth in recent years. In the calendar year 2023 (CY23), the company reported revenues of ₹87.5 crores (US$10.4 million) with an EBITDA of ₹11.7 crores (US$1.4 million). The company has continued its upward trajectory in 2024, with year-to-date (YTD) revenues from January to July reaching ₹116.6 crores (US$13.9 million) and an EBITDA of approximately ₹33.3 crores (US$4.0 million).

Fusebox’s interactive story games, which are primarily monetized through in-app purchases, have garnered a significant user base in developed markets such as the US, UK, Australia, Canada, Switzerland, Sweden, Denmark, Norway, and New Zealand, among others. As of July 2024, in-app purchases accounted for approximately 92% of the company’s total revenues. Fusebox currently employs 30 people, predominantly based in the United Kingdom.

Nitish Mittersain, founder and CEO of Nazara Technologies, expressed his enthusiasm for the acquisition, stating, “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. Many of our existing IPs are good examples of this strategy, and we are happy to join forces with the talented team at Fusebox as we continue to build Nazara into a global gaming company of meaningful scale.”

The acquisition of Fusebox aligns with Nazara’s strategy of expanding its presence in the global gaming market by leveraging its strong foundation in India. Nazara plans to enhance Fusebox’s capabilities through its expertise in user acquisition, data analytics, and AI-driven operations, further strengthening its position as a leading player in the global gaming industry.

The acquisition is expected to be completed by the end of the current fiscal year, subject to customary closing conditions and regulatory approvals.

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