Ace2Three which is the premier rummy website in India is all set to be taken over by the Clairvest group, private Canadian equity fund and some of the other foreign investors. The investors are going to acquire around 85% stakes in Head InfoTech which is the parent company of Ace2Three.The deal will cost the investors around $90 to $ 100 million. The Head InfoTech will continue to own around 15% stake in the company.
Ace2Three has garnered the profit of INR 60 crores this year
This year in march itself Ace2Three has garnered the profit of INR 60 crores and also earned the revenue of 170 crores. Clairvest is not the first company which showed interest in the acquisition of the Indian Rummy giant but last year too group of the investors from India itself showed interest in purchasing the website but the group was put off by the heavy price tag of the Ace2Three. The chief investor of the company was facing pressure from the lenders.
Ace2Three lost its number one position to Rummy circle last year
The owners of the firm were carrying out the acquisition talks with a large number of national and international companies from the past few years. It has been reported that company was actively seeking investors from long since it is under pressure from the debtors and banks. Ace2Three has lost its number one position to another website Rummy circle last year and also Junglee Rummy is giving a tough competition to it. Several domestic and international firms made an attempt to approach Head Infotech Company and in the year 2016 a gaming and hospitality giant of India, Delta Corporation negotiated a deal worth $ 100 million.
CEO of Head Infotech Pvt. Ltd is going to retain his 15% stakes
Due to the pending discussion about acquisition with the potential investors, Head Infotech could not invest in its marketing and could not retain its users which resulted in its position sliding from number one. But this company later pulled back from this deal stating the deal to be highly expensive and risky. It is also believed that this consortium will be purchasing shares of the Matrix partners along with the shares of Rajesh Agarwal, a Hyderabad-based businessman, his family members and also some of the initial promoters. Deepak Gullapalli who is the founder and the CEO of the company are going to retain his 15% stakes in the firm.
Many foreign giants are looking for investment in Indian gaming firms
The Clairvest group has invested around 40% of its funds in the online gaming and other such businesses. Most of the investments of the company were done in the US along with Canada. The acquisition of the Indian company by the foreign giant shows the growing prospects of the Indian online gaming industry. Just like Clairvest group, many other big companies have started investing in various types of the gaming firms in India.