Nazara Technologies Acquires Paper Boat Apps in Rs 300 Crore Deal By CIOTechOutlook Team

Nazara Technologies Acquires Paper Boat Apps in Rs 300 Crore Deal

CIOTechOutlook Team | Saturday, 20 July 2024, 01:29 IST

Nazara Technologies, a media and gaming company, announced the purchase of the remaining 48.42% share of Paper Boat Apps for Rs 300 crore, thereby making it a fully owned subsidiary. Nazara bought the ownership share from the creators of Paper Boat Apps with cash and will pay in installments, as stated in a filing with the stock exchange.

Paper Boat Apps is the creator and distributor of the educational game app 'Kiddopia,' specifically crafted for kids aged 2-8. The US accounts for over 90% of its business.

Nazara is considering merging Paper Boat Apps into the company and incorporating Kiddopia into its platform to take advantage of strong cash flows that can be used for both organic and inorganic expansion, the company stated.

In 2019, Interactive Gaming firm initially purchased a 50.91% ownership of Paper Boat Apps. In FY24, Paper Boat Apps recorded total revenue of Rs 219.4 crore and Ebitda of Rs 56.1 crore, ending with a net cash balance of Rs 155.74 crore.

“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,” Nitish Mittersain, Nazara’s chief executive and joint managing director, told ET.