Canadian Fund Set to Buy Rummy Site Ace2Three
Big news is coming from India with the private investors led by the Canadian Equity fund called Clairvest Group Inc reported to be negotiating a deal to purchase India’s leading rummy site Ace2Threee.
The Clairvest Group invest around 40% of the total funds in gaming sector with most of the current investments made in the United States and Canada. The latest move into the Indian market highlights the expansion plans of the company.
Currently owned by the Head Infotech Pvt Ltd., Ace2Three rummy site is expected to be handed over to a private investors’ group with negotiations heading into the closing stages.
Around 85% of the parent company to Ace2Three will be assigned to Clairvest Group Inc. and a group of foreign investors in a deal that is expected to be worth around $90 to $100 million. The shares which will fall in the hands of the investment consortium will include those of Matrix Partners, among others.
The remaining 15% of the Head Infotech Pvt Ltd. Is expected to remain with the ownership of the CEO Deepak Gullapalli.
Head Infotech Pvt Ltd. Has already been involved in purchase attempts.
Company’s chief investors have been facing pressure from banks and other lenders, whereas the Ace2Three site also lost its leading position at the Indian market with the likes of Rummy Circle and Junglee Rummy jeopardizing its status.
Several Indian and international companies attempted to approach Head Infoteck Pvt Ltd. Before, most recently in 2016, when India’s largest gaming and hospitality company called Delta Corp negotiated a deal which was close to $100 million.
Delta Corp ultimately pulled back from the deal on the grounds of the contract being too expensive and risky. The company believed that rummy – the main product of Ace2Three – was already within Delta Corp’s portfolio.