Delta Corp has agreed to merge its Deltatech Gaming subsidiary with Head Digital Works (HDW), operator of online rummy and real-money skill gaming brand A23.
HDW will acquire a 51 per cent stake in Deltatech, operator of the popular Indian online poker brand Adda52, which will subsequently be merged with HDW, for a total consideration of INR 491 Crore (approx. €54 million).
Upon completion of the merger, Delta Corp will hold a 5.7 per cent stake in HDW, subject to customary conditions, including approval from the company’s shareholders.
HDW’s rummy brand, A23 Rummy, is one of the largest real-money rummy platforms in India with more than 75 million users.
“HDW is the pioneer in online gaming in India and we are excited to work with one of India’s best known poker brands Adda52,” said HDW founder and CEO Deepak Gullapalli. “Adda52 has been a leader in online poker in India and has an excellent platform and a strong user base.
“This transaction will help grow our poker business and help us create a leading diversified card based gaming platform in India.”
Delta Corp managing director Ashish Kapadia commented: “We’re excited for this journey with Deepak and team, whose leadership has been instrumental in shaping the online rummy market in India. We believe that this transaction will help Adda52’s leading position in the online poker market.”
Delta Corp’s Board has convened an extraordinary general meeting of the company’s shareholders on 21 March to seek approval for the deal.
Delta Corp acquired Deltatech (formerly Gaussian Networks) in September 2016.
Shares in Delta Corp Ltd (NSE:DELTACORP) were trading 2.27 per cent lower at INR 97.61 per share in Mumbai Friday afternoon.