Nazara acquires Fusebox Games in ₹228 crore deal, eyes global expansion in interactive story-based gaming

In a strategic move to bolster its core gaming business, Nazara Technologies Ltd has recently acquired UK-based Fusebox Games in a ₹228 crore all-cash deal. The acquisition is part of Nazara's aggressive expansion strategy, leveraging its strong cash reserves to build a robust gaming ecosystem.

Fusebox Games, renowned for its interactive story-based games inspired by popular television serials, presents a lucrative opportunity for Nazara to scale its global operations.

Commenting on the acquisition, Nitish Mittersain, Founder of Nazara Technologies stated, “We found Fusebox very attractive in terms of the valuation we paid. In terms of the financials, they're growing well. They build interactive story-based games based on popular television serials. We think that is a very scalable model. We can take it globally.”

In the calendar year 2023, Fusebox reported ₹87 crore in revenue, with an EBITDA of ₹11.7 crore. However, in the first seven months of this year, Fusebox achieved ₹116 crore in revenue with an EBITDA run rate of ₹33.3 crore. Mittersain noted that even after normalising for seasonal variations, the company is on track to double its revenue and more than triple its EBITDA this year. He expressed optimism about the potential synergies that could be realised by combining Fusebox's strengths with Nazara's experience and extensive network.

Nazara Technologies has been on an acquisition spree, strategically deploying its cash reserves to acquire companies that complement its existing business. With approximately ₹900 crore in cash remaining after the recent acquisitions, Nazara is well-positioned to continue its aggressive expansion.

“We spent most of last year building patiently a very strong deal pipeline. We didn't want to be in a large hurry just because we were sitting on cash. And I think now we are in that execution mode where over the next few months, we will deploy almost all of our cash,” Mittersain explained.

In addition to the Fusebox acquisition, Nazara Technologies has also received a letter of intent (LOI) for the acquisition of Smaaash Entertainment, a company currently undergoing insolvency. While Mittersain refrained from disclosing the financial details of the Smaaash acquisition, he highlighted the strategic importance of this move.

"We see a lot of synergies in offline entertainment, especially with our eSports vertical, with the virtual reality that we are entering into. We think that there will be a lot of online plus offline synergies," he noted.

This acquisition aligns with Nazara's vision to create hybrid entertainment zones that blend online and offline experiences, further enhancing its gaming and eSports offerings.

The recent acquisition of DeltiasGaming.Com by Nazara's subsidiary, Absolute Tech, further underscores Nazara's intent to deepen its presence in key markets like the USA. DeltiasGaming.Com specialises in gaming content publishing, a sector that Nazara is keen to strengthen as it expands its global footprint.

Looking ahead, Nazara Technologies remains committed to its growth targets. While Mittersain did not provide specific revenue projections for the current fiscal year, he reaffirmed the company’s commitment to achieving its FY27 guidance of Rs 300 crore EBITDA. "We are very much on track for our FY27 guidance of Rs 300 crore EBITDA and we'll try to improve on that for sure," he stated.

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