was also to put in Buy Tera Gold a further $4 million to acquire fresh shares

UTV Software Communications Runescape Money Ltd has acquired an additional 30.02 per cent stake in Indiagames Ltd. for $19.28 million (Rs 94.56 crore) from founder-promoters and employee shareholders. Post the transaction, UTV will hold 86.02 per cent stake in the target company.

The deal values Indiagames at around 5.8 times its total income for the year ended March 31, 2011. The transaction also values it at 87x EBIDA and 158x net profit (of Rs 2.47 crore) recorded in the fiscal ended March 2011 by Indiagames. But in this case, multiples based on revenues or income is a more relevant parameter.

If we consider the valuation changes in Indiagames itself, it’s been quite a journey. Chinese internet company Tom Online struck a deal to acquire over 76.3 per cent of Indiagames from Infinity Ventures and IL&FS Investment Managers in a deal worth $13.7 million almost seven years ago. At that time, the deal valued the firm at Rs 82 crore or 4.4x its total income for that financial year, according to data compiled by VCCedge, the financial research platform of VCCircle.

Tom Online was also to put in Buy Tera Gold a further $4 million to acquire fresh shares of the company, but it didn’t go ahead with the additional funding that would have pushed its stake to over 80 per cent. Instead it roped in Cisco and Macromedia as minority investors at the same pre-money valuation.





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http://www.flixya.com/blog/3862796/people-pay-to-Tera-Gold-get-out-in-the-distribution-companies