Head Digital Works Acquires Deltatech Gaming to Boost Online Poker Portfolio
Head Digital Works (HDW), an online gaming company and the parent organisation of gaming firm A23, has completed the acquisition of Deltatech Gaming, known for the online poker platform Adda52. This strategic acquisition is directed at enhancing the online poker portfolio of HDW.
The acquisition will be executed in two stages, totalling an investment of Rs 491 crore ($57.5 million). Initially, Head Digital Works will secure a 51% stake in Deltatech Gaming as part of the merger arrangement. Following this, DeltaCorp Limited will maintain a 5.7% stake in Head Digital Works.
This acquisition allows HDW to utilise Adda52’s advanced technological skills and expertise, enabling accelerated growth within the online gaming sector.
Founded in 2011, Adda52 provides a range of poker experiences, including various game formats, tournaments, and cash games, appealing to both casual players and seasoned professionals in India.
As stated by HDW, this strategic acquisition is projected to improve the gaming experience, foster technological innovations, and meet the changing preferences of users. The company intends to broaden its poker operations, seek new growth opportunities, and develop a comprehensive and diverse skill-gaming platform for its users.
A23 reports having over 75 million registered users in India and offers five gaming options: rummy, fantasy, poker, carrom, and pool.
For the fiscal year 2024 (FY24), A23 recorded a net revenue of Rs 841 crore, slight growth from Rs 839 crore in FY23. Despite stable revenue figures, careful management of costs and a rise in other income allowed A23 to achieve a 24% increase in net profits, totalling Rs 72 crore in FY24.
In November of the previous year, A23 also accomplished its inaugural employee stock options (ESOP) buyback initiative, valued at $3 million.
