UK-listed online bingo operator Stride Gaming has advanced into India with the acquisition of Chandigarh-based Passion Gaming Pvt. Ltd.
In a filing with the London Stock Exchange, Stride Gaming announced that it has gotten hold of 51 percent stake in Passion Gaming, which operates online rummy site Rummy Passion, for a cash consideration of $3.75 million. Established in 2015, Passion Gaming is focused on the Indian skills gaming market, with particular emphasis on online rummy.
The investment will go towards “the company’s working capital to accelerate growth,” according to Stride Gaming. The money will be invested in “marketing, technology and customer service teams to capitalize” on the growing market as well as diversify Stride Gaming’s portfolio.
Bobby Garg, co-founder and CEO of Passion Gaming, said the partnership with Stride Gaming places the Indian rummy company “in a strong position to bring international standards to rapidly growing Indian gaming market.”
Under the deal, Stride Gaming holds the right to acquire the remaining 49 percent of Passion Gaming from existing shareholders over a three- to five-year period at its sole discretion using cash and shares, based on the Indian company’s future financial performance.
The acquisition deal also gives Stride Gaming the right to appoint three directors to the Passion Gaming board.
Stride Gaming CEO Eitan Boyd described the deal as a “highly attractive and strategic yet low risk entry to a rapidly growing and legalized market with enormous potential.
“We have been monitoring the Indian market for some time as we see strong dynamics in the current environment as well as long term growth potential. Our UK market experience and proprietary technology advantage, combined with Passion Gaming’s market positioning and operational focus creates a highly attractive proposition,” Boyd said in a statement.
Passion Gaming is the latest addition to Stride Gaming’s growing list of bases. The London-headquartered company said it has over 300 employees across the UK, as well as in Mauritius, Israel, South Africa, and Guernsey.