The cash consideration will be invested in the company's working capital to achieve faster growth.
The investment will be utilized by Passion Gaming to strengthen marketing, technology and customer service teams to capitalize on a rapidly growing market As part of the investment, Stride Gaming gets the right to appoint three directors to the Passion Gaming board.
"We are delighted to partner with Stride Gaming which is widely recognized as a leading operator and platform provider to the online gaming industry, with an enviable growth track record. Our vision is to provide exhilarating, safe and secure skill gaming to players in India. Working with Stride Gaming places us in a strong position to bring international standards to rapidly growing Indian gaming market as we continue to focus on player acquisition, engagement and loyalty," said Bobby Garg, Founder and CEO, Passion Gaming.
The deal is a win-win for both the companies. The deal gives Stride Gaming a highly attractive and strategic yet low risk entry to a rapidly growing and legalized market like India. Passion Gaming too was looking at working capital funds to leapfrog its reach and presence. It will also be able to take advantage of the huge experience that Stride Gaming has in the UK market.
"We are delighted to announce this investment which gives Stride Gaming 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. It has been a pleasure to get to know Bobby and his team and we are excited about our shared future growth prospects," said CEO of Stride Gaming, Eitan Boyd.
Stride Gaming also has a long-term growth strategy of expanding its presence into new growth markets and attractive, related online gaming product verticals.
Stride Gaming has the right to acquire, at its sole discretion, the remaining 49 percent of Passion Gaming from the existing shareholders over a three to five year period, using a combination of cash and shares based on the future financial performance of Passion Gaming. (ANI)