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The parent company Head Digital Works (HDW) announced its acquisition of its subsidiary Deltatech Gaming through which it controls the famous online poker platform Adda52. HDW acquires Deltatech Gaming for ₹491 crore ($57.5 million) in a move to reinforce its position against market competitors in online poker sales. The acquisition process consists of two stages where HDW will first obtain 51% ownership of Deltatech Gaming.
HDW pursues this acquisition to build its gaming division while obtaining Adda52’s technological capabilities. The merger between DeltaCorp Limited and Head Digital Works will result in DeltaCorp maintaining a 5.7% ownership stake in Head Digital Works to continue facilitating the growth of the Adda52 gaming platform.
Enhancing User Experience and Technological Growth
Adda52 emerged into the online poker market during 2011 by providing numerous game variants together with competitive tournaments and money-based matches. Both beginners and expert poker players from India come to the platform. The acquisition provides HDW with Adda52’s expertise to improve user experiences and technological innovation and address customer needs in changing market dynamics.
The deal gives HDW’s management positive expectations based on their belief that the acquisition enables poker business expansion through new opportunities for growth. HDW strives to develop a complete and broad gaming platform incorporating diverse abilities to fulfill its customer base at different levels.
A23’s Growth and Financial Performance
A23, a well-established brand in the online gaming industry, boasts over 75 million registered users across India. The platform provides multiple games through its operation such as rummy and fantasy sports together with poker and carrom and pool. Net revenue at A23 remained at the same level between FY24 (₹841 crore) and FY23 (₹839 crore) but the company showed a 24% increase in net profits to reach ₹72 crore. Controlled expenditures and increased other income led to this growth.
The company accomplished its inaugural employee stock options (ESOP) buyback scheme worth $3 million last November as part of its employee retention and engagement initiatives.
The Head Digital Works acquisition of Adda52 positions the company strategically to improve its online gaming product range. Adda52’s qualities will enable HDW to succeed with the expanding demand for online poker in India. HDWs market position strengthens due to this acquisition while demonstrating a wider industry-wide trend of companies combining forces to obtain better technology and grow their user bases. The digital gaming environment’s growth pattern allows Head Digital Works to build ongoing development and innovation through this acquisition.
