German Gaming startup Freaks 4U to get acquired for $23.6 million by the Singapore arm of Nazara backed Nodwin Gaming. The company signed an agreement to increase its stakes and buy the startup  in tranches through a share swap deal. This investment is a plan to combine both gaming companies  to improve gaming compatibility and technology while scaling up. 

Freaks 4U is a Berlin-based, gaming startup that offers 360° services for esports and gaming. The  Singapore Unit of Nodwin holds around 13.51 percent stake in the startup and is planning to increase  its existing stake to 57 percent. The remaining 43 percent stake will be acquired later. The acquisition  will be held in two tranches and the total deal is valued at around $32.6 million. This collaboration will  help Nodwin enhance its capability by integrating Freak 4U’s expertise, technology, network, and  experience. The deal will positively affect the revenue of this Nazara-backed firm. 

Nodwin bought the 13.51% stake in Freaks 4U in January this year and has been working with the firm  since then. The company worked with the startup’s management on merging two businesses and  bringing their technologies and solutions together. The two companies have already collaborated on  various big projects including Exports World Cup and PUBG Mobile Global Open. After the successful results both the companies decided to proceed with this transaction. After this deal, both companies  will have a profit, increased technical skills, and more innovative gaming solutions. 

Nazara plans to invest $100 million in these mergers and acquisitions in the next two years. The  company will also acquire Comic Con India this year through Nodwin. Nazara reported a 4.3 percent  increase in its operational revenue to Rs 1,138 crore in FY24. The company controlled its overall  expenditure which helped Nazara to have a 23 percent increase in its profit to Rs 75 crore in the same  duration. The firm plans to invest in expanding after acquiring this gaming startup. This step by Nazara is to strengthen its resources and position in the market by offering more powerful gaming solutions  to its customers. 

Conclusion: 

Nazara’s Singapore arm of Nodwin Gaming is acquiring a gaming startup Freaks 4U for $23.6 million.  The acquisition is to strengthen the technology and generate more innovative gaming solutions. The  company signed an agreement to increase its stakes and buy the startup in tranches through a share  swap deal. This investment is a plan to combine both gaming companies to improve gaming compatibility and technology while scaling up. The Singapore Unit of Nodwin holds around 13.51  percent stake in the startup and is planning to increase its existing stake via two tranches of 57 percent and 43 percent later. The two companies have already collaborated on various big projects including  Exports World Cup and PUBG Mobile Global Open. After this deal, both companies will have a profit,  increased technical skills, and more innovative gaming solutions. This acquisition will affect the total  revenue of Nodwin positively.