Gaming company Indiagames plans to buy a 51% stake in an unnamed US mobile content firm, raising the funds through a new share issue, reports TheEconomic Times.
Indiagames is the leading mobile and online games company in India and distributes software to 75 countries. The company also offers games via its website and has offices in Mumbai, London, Los Angeles and Beijing.
IndiaGames parent company, UTV Software Communications, is also looking to invest a total USD75m in its gaming business and, apart from the 51% stake, will acquire an interest in a US startup to establish a publishing platform for the creation of online content. According to UTV chairman Ronnie Screwvala, the acquisition price for the two companies will be USD30m and it will take three to four months to complete the deal. In addition, UTV is looking to increase its stake in gaming subsidiary Ignition Entertainment from 70% to about 95%.
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