Nazara spins off Nodwin Gaming ahead of fresh funding round
- Spin-off aligns with Nazara’s focus on core gaming IPs and M&A ambitions.
- Nazara retains its position as Nodwin’s largest shareholder post-restructure.
- The company gives up controlling rights to give Nodwin more strategic freedom.
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Nazara Technologies is spinning off its esports subsidiary Nodwin Gaming into a separate entity.
As reported by Inc42, the move comes as Nodwin prepares to raise additional funding from existing investors to support its expansion plans.
Nazara said the new funds for Nodwin will not involve any share sale by the parent company. However, the capital infusion will dilute its stake in Nodwin to below 50%, reclassifying it from a subsidiary to an associate company.
Despite the reclassification, Nazara will remain Nodwin’s largest shareholder, holding a 55% stake since its majority acquisition in 2018. The decision was approved by the company’s board during a meeting held on Wednesday.
A strategic focus
Nazara has also agreed to give up certain controlling and restrictive rights as majority shareholder, allowing Nodwin greater financial and strategic flexibility for future fundraising.
“The company, in line with its sharper strategic focus on core gaming IPs, has decided not to participate in the proposed capital raise by Nodwin. Consequently, the proposed capital raise will result in the shareholding of the company in Nodwin falling below 50%,” the filing read.
Nazara has spent over and above $100 million on M&A. It recently bought UK-based game developer Fusebox for $27.2m, UK publisher Curve Games for $28.9m, and picked up a 47.7% stake in PokerBaazi parent Moonshine for $117m, amongst other activities.
We caught up with the company’s CEO and joint MD Nitish Mittersain to discuss M&A and its ambitions of growing to a $10 billion valuation.
