Of the total consideration, Rs 4.59 crore would be paid in cash and balance Rs 2.99 crore would be via swap of equity shares of Nodwin. Currently, Nodwin owns 7% stake in AFK.
"Post completion of the said acquisition, AFK will become the wholly owned subsidiary of Nodwin and step-down subsidiary of company,” Nazara Tech said in a statement.
It further said that the founders of AFK Gaming will become shareholders of NODWIN Gaming and will join different verticals within NODWIN Gaming while continuing the agency business Max Level and the B2B newsletter Pixel P&L.
AFK Gaming is one of the world’s longest running esports and gaming media companies. Founded in 2012, AFK Gaming has been an integral part of the video games media landscape and has grown into an authoritative source of esports, gaming and youth culture industry content.
Nazara Technologies is India's leading gaming and esports company, owning popular brands like NODWIN Gaming, Sportskeeda, Kiddopia, Animal Jam, World Cricket Championship, and Datawrkz. The company operates in India, the US, and other global markets, offering a diverse range of products and services, including esports, early learning games, casual games, and ad tech solutions.
The company had reported a 47.56% decline in consolidated net profit from continuing operations to Rs 11.80 crore despite 7.3% increase in revenue from operations to Rs 318.94 crore in Q2 FY25 over Q2 FY24.
The scrip fell 1.61% to currently trade at Rs 1034.30 on the BSE.