Disney-backed UTV Software Communications has acquired 30.02 percent stake in country’s largest digital gaming firm, Indiagames a UTV enterprise for $19.28 million (Rs. 94.56 crore) from founder-promoters and employee shareholders.
AZB & Partners advised UTV with a team led by Partners Shuva Mandal along with Associate Archana Rajaram.
Rajani Associates advised the founder group and employees shareholder of Indiagames with a team led by Managing Partner Prem Rajani along with Associate Karishma Jumani.
Walt Disney already holds 58.62 percent majority stake in Indiagames post its acquisition of UTV earlier this year. Walt Disney has recently acquired the shares held by public shareholders and original promoters of UTV for around Rs. 2,000 crore (approximately $450 million) and announced the delisting of UTV from both the BSE and NSE.
Post this buy-out, UTV will hold 86.02 percent stake in the target company, reports VCCircle. Disney is also set to acquire the minority stake held by Adobe Macromedia and CISCO in Indiagames.
Dealcurry reports, Indiagames, founded in 1999, is one of the earliest Indian companies in the mobile and online gaming segment. It has around 250 employees and a base of 60,000 users of games on Demand subsciption model. It is also a distributor of games of Electronic Arts. It competes with Zapak.com, Reliance Group’s gaming firm and Games2Win, founded by Alok Kejriwal.
The Indian gaming market has 12-15 million paying gamers and over 40 million unique users who download free games online and on the mobile. Indiagames has developed games like DLF IPL T20, T20Fever and Bruce Lee. Indiagames also offers 300 PC games through its Games on Demand (GoD) service that has 80,000 subscribers till date. The firm has recently launched the Ra.One game and is now planning a rural gaming initiative across digital platforms, according to VCCircle.