TOM Online (TOMO) announced today it has signed a definitive agreement to acquire a majority stake in Indiagames Limited, an award-winning wireless game developer and global publisher of mobile entertainment content based in India.
Under the agreement, TOM Online will acquire an 80.6% equity stake in Indiagames, India's largest wireless game producer, for a cash consideration of US$17.73 million. TOM Online has acquired around 77% of Indiagames' existing shares from investors including Infinity Ventures, IL&FS Investment Managers and the management team of Indiagames; the remainder of the shares in discussion will be in the form of new shares valued at US$4 million.
Key management staff including founder Vishal Gondal will retain the remaining 19.4% share in the company and continue to run the operations of the company.
The owner of one of the largest wireless content development facilities in the world with more than 160 highly experienced professionals, the India-based company counts top tier Hollywood studios, handset manufacturers, and more than 100 distribution channels among its partners around the world, including Orange, Verizon, Sprint, Singtel, Airtel and AT&T.