MakeMyTrip to buy Ibibo Travel Business

Online Travel firm MakeMyTrip Ltd has agreed to buy Ibibo Group’s Travel Business in India for $720 Million in stock, creating one of the largest travel companies in the country. The deal will bring all brands of the Nasper and Tencent backed Ibibo Group such as Goibibo, redBus, Ryde and Rightstay under MakeMyTrip. Together, MakeMyTrip and Ibibo processed 34.1 Million transactions in 2015-16.

The transaction is expected to unlock value for customers, supply partners and shareholders, by combining the complementary strengths of each business. MakeMyTrip brings its strong brand, robust mix of domestic and outbound hotels and packages business and strong position in the air ticketing business. Ibibo Group, via its brand Goibibo and redBus, comes with a strong presence in various fast growing travel segments including hotels, bus bookings and air ticketing. 

The combined entity is valued at $1.8 Billion. Naspers and Tencent jointly held 91% and 9% stake in Ibibo respectively. They will be issued new shares in MakeMyTrip and will become the single largest shareholder in MakeMyTrip, owning a 40% stake and will continue proportionate working capital once the deal is closed.

India is a key market for Naspers. Ibibo and MakeMyTrip have built leading companies through their innovative use of technology to create exceptional experiences for people traveling throughout India and increasingly beyond. Morgan Stanley acted as the financial advisor to MakeMyTrip. Goldman Sachs acted as financial advisor to Ibibo and Naspers while Cravath, Swaine and Moore, Trilegal and BLC Roberts served as legal advisors.

Activision Blizzard buys Candy Crush Saga Maker

Call of Duty publisher Activision Blizzard has bought King Digital Entertainment, the creator of mobile smash hit Candy Crush Saga, in a deal worth $5.9 Billion. King Digital Entertainment had built one of the largest networks of players on Facebook and on mobile devices noting that King’s games had 474 Million active users in the third quarter of 2015.

Activision already owns one of the biggest gaming franchises in Call of Duty, in addition to Destiny and huge properties such as World of WarCraft and StarCraft as a result of its merger with Blizzard in 2008. The company’s gaming portfolio grows even bigger with the addition of the biggest name in social gaming. Consumer spending on Candy Crush fell 13 percent year over year in the second quarter of this year.

Activision Blizzard games are played on consoles such as Microsoft Xbox and Sony PlayStation. King floated on the New York Stock Exchange in March last year with a valuation of almost $8 Billion making it the most valuable British business of the tech craze. Candy Crush became wildly popular racking up a billion plays a day on smartphones for the company, based in London West End.

This acquisition clearly demonstrates a new commitment to mobile for Activision as well as the will to diversify their IP Portfolio to a more global female audience. Activision has taken in the past a more reserved approach to mobile, releasing only a handful of titles, like Hearthstone and mainly using mobile apps as side experiences to their PC and console games. In the meantime, global competitors such as EA or Tencent have embraced this new sector.

Practo acquires Qikwell

Practo Technologies Pvt. Ltd, India’s largest doctor discovery platform, has acquired smaller rival Qikwell Technologies Pvt. Ltd, for an undisclosed amount in a cash and stock deal. This is Practo fourth acquisition in six months. Practo tries to penetrate deeper into the enterprise segment, especially hospitals.

With this acquisition, Practo now aims to service 40 Million appointments every year. Founded in 2011, Qikwell is backed by SAIF partners with an investment of Rs. 18.3 crore. The Bengaluru based technology start up is a doctor discovery platform that offers real-time appointment bookings. The company currently has over 6,000 doctors listed on its platform.

It has employee strength of more than 100 people and has branches in Chennai, Hyderabad, and Delhi. It plans to expand to Mumbai, Pune and Kolkata in the coming months. Qikwell is Practo fourth acquisition in six months. In April, it acquired FitHo Wellness Services Pvt. Ltd. It also bought Mumbai based Genii to strengthen its technology infrastructure last month. Two weeks ago, Practo acquired Insta Health Solutions.

Practo recently raised $90 Million from Tencent, Belgian venture capital firm Sofina, Sequoia Capital Global Equities, Google Capital, Altimeter Capital and Yuri Milner and existing investors Sequoia India and Matrix Partners. The company has raised $125 Million since its launch in 2008. The $90 Million round is the biggest for a domestic healthcare startup.