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 exchanges. 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 operates Adda52.com and is said to be the market leader in the online poker space in India.

Delta Corp is expected 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 incorporated on Juౠne 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 tu𓄧rnover of Gauss 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, De🎉lta will widen its business horizon and increase its overall footprint, thereby consolidating its overall leadership position. This transaction is not only synergetic from business and growth perspectiveꦿ but will also provide financial strength and flexibility to Delta.

Delta Corp also noted that the 🅰proposed acquisition and am🍌algamation 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. and Gaggar & Associates have acted on behalf of Gaussian 𒈔Networks and its promoters.