Cisco, Macromedia acquire strategic stake in Indiagames

Indiagames’ globalisation spree is in top gear! Not only has the company been succesfully marketing its services across the globe but it is also attracting strategic investors from all across. Late last year, Indiagames made headlines with Chinese major TOM Online accquiring a major stake (80.6%) in the company for a cash consideration of $17.73 million. The latest news is that US majors Cisco Systems and Macromedia Inc (recently acquired by Adobe) will acquire strategic share interests in Indiagames Ltd. In an announcement made on 29 April,Cisco Systems Inc. and Macromedia Inc stated that the companies will pay a total of US$4 million for a combined stake of 18.2% in Indiagames through subscription of new shares. In view of Cisco and Macromedia’s investments, TOM Online, which owns 76.3% of Indiagames, will not subscribe for new shares worth US$4 million in the company as stated in its announcement on December 17, 2004. Following Cisco and Macromedia’s investments, TOM Online’s share in Indiagames will be diluted to 62.42% while Indiagames original shareholders and management, including its founder Vishal Gondal, will continue to hold a 19.4% stake in the company. The official press release quotes Indiagames CEO and Director Vishal Gondal saying I am delighted to have Cisco and Macromedia as investors in Indiagames. We now have Chinese, Indian and American investors, all leaders in their respective verticals. This combination is really very unique and will surely help accelerate our global growth plans, keeping us on the cutting edge of mobile, broadband and Internet technology. Gondal told Animation ‘xpress that, “Indiagames is going to rapidly expand in the online gaming as well as the mobile gaming space and with investors like Cisco and Macromedia we are bound to benefit” The release also mentions that Indiagames will also publish and support all its content on the Macromedia Flash Lite ¬†platform which is already having a big share in Japan and is expanding worldwide.