India’s largest gaming and hospitality company is reportedly negotiating a deal to acquire online rummy website Ace2three.com.
Reports surfaced on Tuesday that Delta Corp. is in discussions to with Head Infotech Pvt. Ltd., which operates Ace2three.com.
Jay Sayta of GLaws.In quoted a report from news channel ET Now, which suggested that the hospitality company may be shelling out between USD80 and 100 million in a stock and cash deal for the rummy site. The acquisition is expected to be announced by mid-October, according to the news outlet.
The deal, if it pushes through, will make Delta Corp the number one player in the online skills games space in India.
In August, the hospitality company paid more than USD7 million in cash to acquire 26 percent of shares in Gauss Networks Pvt. Ltd., the company that owns and operates India’s largest poker site Adda52.com. Following the acquisition, Adda52.com become a subsidiary of Delta, and “will witness Delta’s entry into online space and will give it an instant leadership position in the online poker space,” the company said.
Head Infotech estimates its EBITDA for 2015 to be around INR100 crore (USD15.04 million), while its turnover is in the range of INR200 crore (USD30.08 million), according to GLaws.In. Ace2Three is said to have around 7 million users on its rummy platform.
Delta Corp. holds three of the six issued offshore gaming licenses in Goa in addition to an integrated casino resort in Daman, and three luxury hotel properties in Goa—Deltin Suites, Deltin Palms and Villa Marina by Deltin. The government of Goa has also authorized Delta’s wholly owned subsidiary, Delta Pleasure Cruise Company, to operate MV Royale Flotel – Deltin Caravela on Mandovi River.
In Sikkim, Delta is set to open a new casino in the state’s Gangtok area. The company already has two existing casinos in Sikkim—Casino Mahjong in the Mayfair resort and Casino Sikkim in Hotel Royal Plaza.