M&A: The art of the deal

The Tech Panda takes a look at recent mergers and acquisitions within various tech ecosystems and what that means for industry.

Yudiz Solutions Limited Acquires 51.01% stake ABCM App Pvt. Ltd

Yudiz Solutions Limited, an IT services and product-based company, acquired a 51.01% stake in ABCM App Pvt. Ltd., a fintech firm specialising in digital payment solutions. This acquisition marks Yudiz’s entry into the rapidly growing fintech sector and positions it as a key player at the intersection of fintech, gaming, blockchain and AI. With this strategic move, Yudiz aims to enhance its service offerings by leveraging its expertise in blockchain and artificial intelligence to revolutionize financial services.

Commenting on the acquisition, Bharat Patel, Chairman and Director of Yudiz Solutions Limited, said, “I have closely observed the fitness landscape in India evolve over the years. The pace at which financial services are becoming more accessible is truly unprecedented. At the Global Fintech Festival 2024, Prime Minister Narendra Modi highlighted how fintech has democratised financial services. At Yudiz, we are not just witnessing this revolution, but are actively contributing to it. Our collaboration with ABCM App reflects our commitment to creating secure, innovative solutions that meet global financial needs. Together, we are simplifying financial transactions while ensuring that these services are inclusive, empowering individuals across all socioeconomic backgrounds.”

Santosh Purabia, Director of ABCM App Pvt. Ltd. said, “The collaboration with Yudiz Solutions opens up exciting possibilities for us. We are confident that this partnership will push the boundaries of fintech innovation, merging our digital payment solutions with Yudiz’s advanced technological capabilities. Together, we aim to set new standards in digital financial services, delivering greater value and convenience to users.”

The acquisition represents a huge step in Yudiz’s efforts to diversify and strengthen its offerings. With the acquisition, Yudiz gains access to ABCM’s established fintech clientele, presenting cross-selling opportunities for its gaming, blockchain and AI solutions, and broadening its reach in both the financial and technology sectors. The collaboration will expedite the development of innovative solutions such as AI-driven financial analytics, blockchain-based payment systems and secure digital wallets. Yudiz is also positioned to introduce new concepts like gamified payment platforms and tokenised financial products.

The integration of ABCM’s resources, talent and technology with Yudiz’s infrastructure will drive operational efficiencies, streamline costs, enhance productivity, and enable rapid scaling across business verticals.

Why It Matters

Moreover, the coming together of ABCM’s payment expertise with Yudiz’s blockchain and AI capabilities will contribute to India’s transition to a cashless economy. While AI will play a crucial role in personalising user experiences and improving security, blockchain technology will enhance transparency and trust in financial transactions. Together, they will address the growing demands of users for efficient, secure and user-friendly financial solutions. The collaboration will also facilitate the creation of accessible fintech solutions, including micro-lending, digital wallets, and low-cost remittance services, particularly targeting underserved rural markets.

Nazara Technologies Limited Acquires a 47.7% stake in Moonshine Technology Private Limited

Nazara Technologies Limited (BSE: 543280, NSE: NAZARA), announced the acquisition of a 47.7% stake in Moonshine Technology Private Limited (“MTPL” or “Moonshine”), the parent company of PokerBaazi, India’s top online poker gaming platform, for INR 832 crores through a secondary transaction. Additionally, Nazara will inject INR 150 crores in primary capital into Moonshine via compulsory convertible preference shares.

PokerBaazi is India’s largest online poker platform, driving over 85% of Moonshine’s net revenue, while its fantasy sports platform, SportsBaazi, contributes 12%. PokerBaazi had ~340,000 monthly active users as of May 2024. The company’s success is attributed to its dynamic and forward-thinking leadership team, led by Founder & CEO Navkiran Singh and Co-Founders Puneet Singh, Varun Ganjoo, Avneet Rana, and Anirudh Chaudhry, whose combined efforts are driving the transformation of India’s poker ecosystem.

Commenting on the development, Nitish Mittersain, CEO of Nazara Technologies, said: “This investment in Moonshine Technology represents a significant step in our journey to strengthen Nazara’s position as India’s dominant diversified gaming platform. PokerBaazi has not only emerged as the undisputed leader in online poker gaming in India but has also set new standards in user engagement, innovation, and overall experience. We’re excited to join forces with Navkiran, Puneet, and the entire Moonshine team, whose vision and leadership have been instrumental in shaping the poker landscape in India. Together, we look forward to driving growth in this space and taking Indian gaming to new heights, both domestically and globally.”

Navkiran Singh, CEO & Founder, Baazi Games (MTPL) also shared his views, “As the Indian gaming sector continues to grow, we firmly believe that partnering with Nazara Technologies is the right step toward advancing the nation’s gaming ecosystem. This partnership will also contribute to our aim for global expansion in the gaming space. With the Hon’ble Prime Minister’s recognition of the gaming sector’s role in shaping India’s $1 trillion digital economy, we are confident that our combined efforts will foster innovation, create new jobs, and further India’s place in the global digital economy.”

Nazara Technologies Limited Acquires Stake in Absolute Sports Pvt. Ltd

Nazara Technologies Limited (BSE: 543280 NSE: NAZARA), also acquired an additional 19.35% stake in Absolute Sports Pvt. Ltd., the parent company of Sportskeeda, for INR 145.5 crores, with 50% of the consideration paid in cash and the remaining amount in stock. With this, Nazara now holds a 91% ownership stake in Absolute Sports, solidifying its leadership position in the sports media domain.

Nitish Mittersain, CEO & Jt MD of Nazara Technologies Limited remarked “Nazara has demonstrated its ability to attract top-tier investors who believe in our long-term vision of establishing India’s first globally respected gaming powerhouse. This INR 900 crores fundraise will be instrumental in accelerating our growth across key segments. Additionally, increasing our stake to 91% in Absolute Sports (Sportskeeda) reinforces our leadership in the sports media landscape. The growth of Absolute Sports, from its early days as a startup to becoming a global media player, underscores our commitment to supporting innovative teams that consistently deliver transformational growth.

Why It Matters

Sportskeeda, Absolute Sports’ flagship brand, reaches millions of sports fans globally each month, with significant traction in India and the US, where it ranks among the top sports platforms. In addition, Absolute Sports has recently expanded by acquiring Pro Football Network (PFN), SoapCentral, and Deltia’s Gaming, further diversifying its sports and entertainment portfolio.

Persistent Systems Acquires Arrka

Persistent Systems (BSE: 533179 and NSE: PERSISTENT), a company in Digital Engineering and Enterprise Modernization, announced the intent to acquire Arrka, a Pune-based company renowned for its decade-long data privacy expertise, its pioneering Data Privacy Management platform and growing expertise in AI governance. This strategic acquisition significantly enhances Persistent’s AI-led, platform-driven services and strengthens its ability to provide comprehensive offerings in digital governance, including data privacy, AI governance, and cybersecurity, among others. With Arrka’s expertise, Persistent will help clients accelerate their transformation journeys while ensuring ethical, responsible, and compliant AI.

Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent, said, “Arrka’s acquisition perfectly aligns with our vision to deliver AI-driven services that fuel innovation and ensure data privacy, ethics, and compliance at every stage. By integrating Arrka’s expertise with our AI-led, platform-driven services strategy, we are empowering businesses to innovate responsibly while managing risk and compliance more effectively. Their mature frameworks and Data Privacy Management platform provide a scalable foundation to ensure this new capability is platform-driven and embeds governance from the outset, which is now critical for successful AI implementations. We’re delighted to welcome Shivangi and her talented team as we strengthen our digital governance and data privacy offerings and shape the future of responsible AI together.”

Shivangi Nadkarni, Co-Founder, Arrka, said, “The acquisition by Persistent catapults Arrka onto the global stage. With the strength and resources of Persistent, we now have the opportunity to go from what has been a specialist, boutique business working with select long-term clients in India, to expanding our footprint into global markets and deepening our expertise rapidly in multiple areas of digital governance. Moreover, this has come at an opportune time, just when this domain is experiencing significant growth globally with the rise of AI. The Arrka team is excited by the opportunities ahead.”

Why It Matters

With the widespread adoption of AI, implementing and managing digital governance in general and data privacy and responsible AI are taking center stage for enterprises across industries. Persistent is addressing the opportunities in AI through strategic investments in innovative platforms like SASVA™, an in-house cutting-edge platform using generative and deterministic AI, as well as through tuck-in acquisitions such as that of Starfish Associates, to strengthen its position in AI-powered Contact Center and Unified Communications. The integration of Arrka is a critical component in scaling Persistent’s AI practice and addressing the rising demand for digital governance. It is a key to the Company’s strategy to deliver responsible, ethical, and comprehensive platform-driven digital solutions.

Cyient DLM Acquires Altek Electronics

Cyient DLM, an integrated electronics manufacturing company, announced its acquisition of Altek Electronics, an EMS (Electronic Manufacturing Services) company based in the United States. This strategic move marks a significant milestone in Cyient DLM’s growth plan, expanding its presence in the North American market and strengthening its capabilities across key sectors.

Krishna Bodanapu, Executive Chairman of Cyient DLM, commented, “This acquisition is a pivotal moment for Cyient DLM. It expands our global footprint, brings us closer to our strategic customers, and significantly strengthens our capabilities. With this acquisition, Cyient DLM is not only broadening its reach into the Medical & Healthcare and Industrial sectors but also bolstering its capabilities for the Defense sector through ITAR compliance. Altek Electronics’ proven track record with key industry leading clients will accelerate Cyient DLM’s ability to deliver high-performance, reliable services across these sectors.

Anthony Montalbano, CEO of Cyient DLM, added, “This acquisition is more than just an expansion, it is an important milestone for Cyient DLM. With the addition of Altek Electronics’ expertise, we are enhancing our manufacturing capability & capacity, and strengthening our competitive position in the North American market. This allows us to continue offering world-class services that meet the evolving needs of our customers.”

Why It Matters

Altek Electronics, with its strong footprint in the Medical & Healthcare and Industrial sectors, strengthens Cyient DLM’s capability in these sectors and adds a diverse customer base to Cyient DLM. The acquisition adds a number of Fortune 500 clients to Cyient DLM’s portfolio and strategic engagements with multiple other key clients. Additionally, Altek Electronics, with its ITAR certification, positions Cyient DLM well to address the growing US Defense market. Through this acquisition Cyient DLM will also significantly expand its manufacturing capacity adding additional 80,000 sft of manufacturing area to cater to its clients globally.