Mumbai: Delta Corp is acquiring Gauss Network, which owns Adda52.com, a poker site, in a part cash, part equity deal.
In its disclosure recently to the stock exchanges, Delta Corp said that with this transaction, which complements the gaming business, “Delta will widen its business horizon and increase its overall footprint, thereby consolidating its overall leadership position.” With Gauss Network within its fold, Delta Corp will instantly gain leadership position in the online poker space. The acquisition will provide great business and growth synergies as well financial strength and flexibility. It will help expand the customer base and market penetration.
The online gaming space in India, while well established worldwide, is in its early stages and has immense growth potential.
Hardik Dhebar, Group CFO of Delta Corp, said: “The online space will not cannibalise our existing business. The market is big enough to accommodate both the segments. Globally, the two coexist.” He added: “The consolidated revenue of Gauss Network in FY16 was Rs.47 crore and EBITDA margins were in the 30%-35% range.”
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