Online skill gaming company Head Digital Works (HDW), the parent company of A23 Rummy and A23 Poker, announced its acquisition of Deltatech Gaming Ltd (DGL), the operator of online poker platform Adda52, for Rs 491 crore. The transaction will be executed in two phases.
HDW will first acquire a 51% stake in Deltatech Gaming. Following this, Deltatech Gaming will merge into HDW, with DeltaCorp Limited retaining a 5.7% stake in the merged entity. The company expects this merger to solidify its position in the online skill gaming market in India.
The acquisition brings together two of India’s leading skill-gaming platforms. By leveraging Adda52’s expertise in online poker and HDW’s technological capabilities, the combined entity aims to enhance the gaming experience, foster innovation, and drive growth in the online poker industry.
According to HDW, this acquisition will enable the company to expand its poker business, explore new growth avenues, and build a comprehensive and diversified skill-gaming platform. Adda52, launched in 2011, offers various poker formats, tournaments, and cash games, attracting both casual and professional players across India.
HDW operates real-money gaming platforms such as A23 Rummy and A23 Poker, with over 75 million registered users across India. The company offers games including rummy, fantasy sports, poker, carrom, and pool. In FY24, A23’s net revenue stood at Rs 841 crore, compared to Rs 839 crore in FY23. Despite flat revenue, controlled expenditures and increased other income contributed to a 24% rise in net profits to Rs 72 crore in FY24.
In November 2023, A23 also completed its first-ever employee stock options (ESOP) buyback program worth $3 million, further demonstrating its financial stability and commitment to employee incentives.
Deepak Gullapalli, Founder and CEO of Head Digital Works, expressed enthusiasm about the acquisition, stating, “We aim to expand our poker business, accelerate growth through new avenues, and create India’s most comprehensive and diversified skill-gaming platform for our customers.”