VCCircle

FXLabs Studios, an Indian developer of video games and 3D services, has acquired 100 per cent stake of Interactive Media Technology, Inc., a US-headquartered company that owns online casual games portal Knibble.com for $3 million in stock.
According to a report in The Economic Times, IMT will get 17 per cent stake in FXLabs in return for the sell-off. This will value FXLabs at $17.64 million.
IMT is set up by Sashi Chimala (see a Rediff interview of Chimala), who is known for his earlier entrepreneurial venture Qwiky's Coffee (a coffee retail chain which shut shop). He is also one of the founding members of Covansys; founder of Indigo Technologies (which was later acquired in a 2-way deal between SSI and Nasdaq); and of CricTV.com, the first social video network for cricket. IMT is his latest venture.
FXLabs was founded in 2003 by Sashi Reddi, who is also founder, chairman & CEO of AppLabs Technologies, a software testing company backed by Sequoia Capital India. Following the deal, FXLabs will become a consumer play from the current status of being a game developer alone. IMT claims to have a portfolio of 10,000 plus games over multiple platforms. It claims to have a web crawling technology which aggregates casual games from the web. "We are extremely optimistic about emerging markets like India driving worldwide online game revenues, and we believe that this is a terrific move for both FXLabs and Knibble," Reddy has been quoted as saying.