Breaking news: Delta Corp announces acquisition of Adda52 in multi-billion stock+cash deal

In what could be termed as the biggest news in the gaming industry this year, Delta Corp Ltd., India’s largest gaming and hospitality company announced its foray into the online gaming space in a regulatory filing to the stock e♛xchanges. In its to the stock exchanges and shareholders, Delta Corp informed its intention to acquire 26% shares in Gauss Networks Pvt. Ltd., the holding company which owns and operate🐓s Adda52.com and is said to be the market leader in the online poker space in India.

Delta Corp is exp🐠ected to pay Rs. 47.30 crores in cash for acquisition of 26% of the shares of Gaussian Networks, and offer Optionally Convertible Preference Shares (OCPS) as well Redeemable Preference Shares (RPS) to the founder shareholders of Gaussian Networks for eventual amalgamation of the company as its wholly owned subsidiary. As per Delta Corp Chief Financial Officer (CFO) Hardik Dhebar’s interview to , the total deal size is expected to be about Rs. 155 crores.

In its regulatory filing, Delta Corp noted:

Pursuant to the proposed transaction, Gaussian Network Pvt. Ltd. (“Gaussian”), a wholly owned subsidiary of the Transferor incorporate💙d on June 10, 2011, which owns and operates the online poker website www.adda52.com which is the market leader and India’s no. 1 online poker website, will become a subsidiary of Delta. This will witness Delta’s entry into online space and will give it an instant leadership position in the online poker space.

The consolidated turnover of Ga🅷uss and Gaussian for the last 3 financial years is as (a) Rs. 47.13 Crore for FY 2015-16; (b) Rs. 35.19 Crore for FY 2014-15; and (c) Rs. 18.15 Crore for FY 2014-2015.

With this transaction, Delta will widen its business horizo🌜n and increase its overall footprint, thereby consolidating its overall leadership position. This transaction is not only synergetic from business and growth perspective but will also pr🐎ovide financial strength and flexibility to Delta.

Delta Corp also noted thღat the proposed acquisition and amalgamation will be completed by 30th June, 2017 and is subject to regulatory and statutory approval from the shareholders, stock-exchanges and courts.

Leading law firm AZB & Partners is believed to have advised Delta Corp in the deal while Khaitan & Co. an♒d Gaggar & Associates have acted on behalf of Gaussian Networks and its promoters.