Head Digital Works to Acquire Deltatech Gaming to Grow Its Skill Gaming Presence

Head Digital Works, an Indian online skill gaming operator, has revealed its plans to acquire the Deltatech Gaming, the parent company of the online poker platform Adda52. According to the announcement, the transaction will be executed in two phases.

Head Digital Seeks to Grow Its Presence in India

Head Digital Works said that it has put forward $56.7 million for the acquisition, which would cement its leadership position in online skill gaming. The company already operates A23 Rummy and A23 Poker, two of India’s best-known gaming platforms.

Adda52, Deltatech’s poker division, was originally acquired by the latter company in 2016 for $17.3 million.

As mentioned, the current acquisition will have two phases. The first one will see Head Digital Works acquire a majority 51% stake in Deltatech Gaming. At a later date, the former company will complete this takeover and will integrate Deltatech Gaming into its broader business.

In the wake of the merger, Deltatech will secure a 5.7% stake in Head Digital Works.

The agreement will notably be the second-largest deal in Indian skill gaming after the recent acquisition of PokerBaazi parent Moonshine Technology by Nazara Technologies. This arrangement cost the latter party some $113.4 million to complete and was the largest gaming M&A in India.

The Resulting Entity Would Be Stronger

Head Digital Works, which already boasts a significant player base, is optimistic about the agreement, which would further expand its business. The company already offers gaming to some 75 million customers and is looking forward to integrating Adda52 and its players into its broader business.

Thanks to this deal, Head Digital Works will solidify its position as a local powerhouse.

Company officials commented on the matter, saying that the resulting entity would be poised to set new industry standards and accelerate its growth within the Indian gaming sector. Players will also benefit from the arrangement as the merged entity will pair two of the best skill-gaming platforms and will deliver unparalleled experiences to gamers in India.

Deepak Gullapalli, Head Digital Works’ founder & chief executive officer, was very pleased about the opportunity to reinforce his team’s poker business and accelerate his company’s growth. He added that his team remains committed to creating the most comprehensive and diversified skill-gaming platform in India.

India Introduced a Retroactive Gaming Tax

In other news, in January, gaming businesses in India appealed to the Supreme Court for help with backdated Goods and Services Tax (GST) bills, which might not correspond to their revenues. This came shortly after the GST department pushed for a retroactive 28% tax.

In December, officials of the Directorate of Enforcement (ED) were allegedly assaulted by staff members of the offshore Casino Pride operating in the Mandovi River.