Canada’s Clairvest Purchases Rummy Site Ace2Three for $74M
The purchase was expected to be worth somewhere between $90 and $100 million, but Deepak Gullapalli, the CEO of Ace2Three announced that the deal has officially gone through for the sum of $73.7 million.
“We just closed the round with Clairvest Group leading it along with a consortium of investors. We were valued at close to $100 million. I will continue as the CEO and Ace2three will continue to be focused on the Indian market,” Gullapalli said.
Clairvest has acquired a majority stake in Hyderabad-based company Head InfoTech which operates the online rummy website Ace2Three in what is likely to become one of the largest transactions in the country.
Canadian company Clairvest and its existing investments in the global gaming industry are thought to be of strategic help in expanding the footprint to new territories. Ace2three will be primarily focused on India, but Clairvest is expected to offer help with scaling the business and expanding into other gaming products within the social gaming space which will be launched in other geographies outside of India.
Managing Director of Clairvest Group Michael Wagman will join the board of Head InfoTech.
“This is an exciting new platform that builds on Clairvest’s 15 years’ experience in the gaming industry and expands our track record into skill gaming,” Wagman said.
Clairvest Group is said to have invested approximately $40 million, with the rest being pooled in by a consortium of investors.
Ace2Three presently caters to over 8 million online gamers in India. Experts estimate that the online rummy and poker business was worth over $120 million in 2016 when nearly two dozen rummy sites emerged in India.