Today, Delta Corp announced that it is all set to acquire Gauss Network Pvt Ltd in part cash, part equity deal. Gauss network owns Adda52.com, India’s No1 poker site. Delta Corp announced in its disclosure to the stock exchanges yesterday that with this acquisition, which complements the gaming business, Delta Corp will widen its business horizon and increase its overall footprint, thereby consolidating its overall leadership position. The market seemed all too pleased with Delta Corp’s move that Delta Corp share price opened at around 4% rise on NSE.
With Gauss Network within its fold, Delta Corp will immediately gain leadership spot in the online poker space. The acquisition will offer business and growth synergies as well financial strength and flexibility. It will help expand the customer base and market penetration. The online gaming space in India is in its infancy and has immense growth potential, while it is well established worldwide.
Delta Corp share price is currently trading at Rs. 157.70.
Hardik Dhebar, Group CFO of Delta Corp, said that the online space would not eat up their existing business. The market is big enough to house both the segments. Globally, the two coexist. He also added that the consolidated revenue of Gauss Network in FY16 was Rs 47 crore, and EBITDA margins were in the 30%-35% range. Also, the company is debt-free and is cash generating.
Delta Corp had registered its best-ever quarter with revenue of Rs 108.65 crore in Q1 FY17 – a growth of 34.6% over the corresponding quarter in the last financial year. Delta Corp is the largest and only listed company in the gaming and hospitality segment in India. The company is in the top 500 picks for the quarter by Dynamic Levels. For details on the stock, visit Delta Corp share price history page.
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