Stride Gaming Acquires 51pc Stake in RummyPassion.com
(6 months ago)
MUMBAI: Stride Gaming plc (AIM: STR), a leading online gaming operator, today announces it has acquired a 51pc stake in Passion Gaming Private Limited ("Passion Gaming"), a Rummy-focused online gaming company operating across India, for a cash consideration of USD 3.75m. The cash consideration will be invested in the company's working capital to accelerate growth.
The investment fits with Stride Gaming's stated long-term growth strategy of expanding the Company's presence into new growth markets and attractive, related online gaming product verticals. The Company has the right to acquire (at its sole discretion) the remaining 49% of Passion Gaming from the existing shareholders over a three to five year period, using a combination of cash and shares based on the future financial performance of Passion Gaming.
Passion Gaming, which was established in 2015, operates http://www.RummyPassion.com and is focused on the Indian skills gaming market, with a particular emphasis on Rummy. The Company's investment provides Passion Gaming with the capital needed to invest further in marketing, technology and customer service teams to capitalise on a rapidly growing market whilst diversifying Stride Gaming's portfolio into attractive new products and markets. As part of the investment, the Company has the right to appoint three directors to the Passion Gaming board.
Eitan Boyd, CEO of Stride Gaming said:
"We are delighted to announce this investment which gives Stride Gaming a highly attractive and strategic yet low risk entry to a rapidly growing and legalised market with enormous potential.
We have been monitoring the Indian market for some time as we see strong dynamics in the current environment as well as long term growth potential. Our UK market experience and proprietary technology advantage, combined with Passion Gaming's market positioning and operational focus creates a highly attractive proposition. It has been a pleasure to get to know Bobby and his team and we are excited about our shared future growth prospects."
Bobby Garg, Co-Founder and CEO of Passion Gaming said:
"We are delighted to partner with Stride Gaming who are widely recognised as a leading operator and platform provider to the online gaming industry, with an enviable growth track record. Our vision is to provide exhilarating, safe and secure skill gaming to players in India. Working with Stride Gaming places us in a strong position to bring international standards to rapidly growing Indian gaming market as we continue to focus on player acquisition, engagement and loyalty. "