Delta Corp Acquires Poker Site

Delta-CorpIndia’s sole listed gaming company Delta Corp Friday acquired Gauss Network, the owners of poker site for an undisclosed amount. The transaction will be done partly through cash and partly through equity transfer.

Delta Corp said that with this transaction, which complements the gaming business, it will widen its business horizon and increase its overall footprint, thereby consolidating its overall leadership position. With Gauss Network within its fold, Delta Corp will instantly gain leadership position in the online poker space.

“The acquisition will provide great business and growth synergies as well financial strength and flexibility. It will help expand the customer base and market penetration,” the company said in a statement.

The online gaming space in India is in its early stages whereas it is well developed in the other parts of the world.

“The online space will not cannibalise our existing business. The market is big enough to accommodate both the segments. Globally, the two coexist.” He added: “The consolidated revenue of Gauss Network in FY16 was Rs 47 crore and EBITDA margins were in the 30%-35% range,” said Hardik Dhebar, Group CFO of Delta Corp.

Delta Corp registered its best-ever quarter with revenue of Rs 108.65 crore in Q1 2016-17 – a growth of 34.6% over the same quarter in the last financial year. ‘The company is debt-free and is cash generating,’ the statement added.

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