Nazara Technologies, a gaming and sports media company based in India, has made a significant move to expand its presence in the gaming industry by acquiring Fusebox Games, a UK-based interactive story game publisher, for $27.2 million. This all-cash deal will help Nazara strengthen its position in the core gaming segment.
Fusebox Games is known for its successful interactive story game Love Island and is currently developing new games based on popular global TV intellectual properties. In 2023, the company reported revenues of $10.4 million and an EBITDA of $1.4 million. The acquisition of Fusebox will further boost Nazara’s portfolio and allow them to tap into the growing market of interactive story games.
Fusebox Games has demonstrated impressive growth, with year-to-date revenues of $13.9 million and an EBITDA of $4 million. The company primarily monetizes its games through in-app purchases, which accounted for about 92% of its total revenues in the first half of 2024. The games target developed markets such as the U.S., U.K., Australia, Canada, Switzerland, Sweden, Denmark, Norway, and New Zealand.
Nazara Technologies sees a significant opportunity in building an IP-based global gaming business, leveraging its strong base in India to support global studios through enhanced user acquisition strategies, data analytics, live operations, and new initiatives like implementing their in-house AI playbook. The company believes that Fusebox’s talented team will play a crucial role in their journey towards becoming a global gaming company of meaningful scale.
Nazara Technologies is India’s only listed gaming and esports company and owns majority stakes in leading gaming and esports brands in India, the U.S., and other global markets. The company is focused on expanding its presence globally and sees the acquisition of Fusebox Games as a step in that direction.
Nazara Technologies worked with Jerome Merchant + Partners, KPMG, and Taxedge as legal and financial advisors for the acquisition. Fusebox Games, on the other hand, enlisted Aream & Co and Level Up Partners as financial advisors and Osborne Clark as legal advisors.
This partnership between Nazara Technologies and Fusebox Games highlights the growing trend of consolidation in the gaming industry as companies seek to expand their market share and diversify their offerings. It also signifies the increasing importance of interactive story games, which have gained significant popularity in recent years. With the resources and expertise of Nazara Technologies, Fusebox Games is well-positioned to continue its growth and success in the global gaming market.