Games development firm announces IPO
Games development firm Team17 has this morning announced its intention to float on the London Stock Exchange, with an expected valuation of between £200m and £230m.
Wakefield-headquartered Team17’s core area of premium personal computer and console market was valued at a combined $49bn in 2017 and is projected to grow to $59bn in 2021.
Team17’s revenues for the year 31 December 2017 increased to £29.6m (2016: £13.5m) and adjusted EBITDA increased to £12.9m (2016: £6.1m).
Its portfolio comprises over 90 games, including the Worms franchise, as well as Overcooked and The Escapists.
Debbie Bestwick
Debbie Bestwick, chief executive of Team17, said: “We have created an immensely powerful base from which to continue to grow our business, supported by a hugely talented team and an ever expanding stable of world class content and partners.
“We firmly believe that an IPO will not only broaden the profile of the business globally but will enable Team17 to continue to capitalise on our position as a leading independent video games label for indie developers, as well as continuing to successfully develop our own IP in house.”
Bestwick founded Team17 in 1990 and her stake will be worth around £100m when the company floats on AIM this month. Bestwick intends to sell up to 50% of her shareholding in the flotation.
Team17 is a leading video games label and creative partner for independent developers. The group supports both owned first party IP and third party IP, through partnering with indie developers globally, in the development and publishing of games across multiple platforms typically for a fixed revenue share.
Team17 said the IPO was possible due to its experienced management team led by Bestwick, who has over 30 years of experience in the gaming sector, and a senior management team with over 140 years’ combined experience and strong relationships across Sony, Microsoft, Nintendo, Steam, Apple and Google.
The firm said that it focused on lifecycle management to ensure long term contribution from back catalogue of titles, with over 50% of revenues in 2017 generated from existing titles.
It has a strong pipeline of new game launches planned for 2018, with Yoku’s Island Express, Genesis Alpha One, Raging Justice, My Time at Portia, Planet Alpha, Forged Battalion, and Mugsters already announced across various platforms for launch in 2018.
GCA Altium were nominated advisers.
