NorthEdge hits double figures with Sumo Digital deal
PRIVATE equity firm NorthEdge Capital has reached double figures with its latest investment.
The Manchester-based firm’s Yorkshire office has backed a management buyout of game development studio Sumo Digital.
One of Europe’s leading independent game studios, Sheffield-headquartered Sumo, which was founded in 2003, partners with top tier publishers and has developed a number of high profile titles including Forza Horizon 2 for Microsoft’s Xbox360, Sonic and Sega All Star Racing, and Xbox Fitness. Most recently it partnered with Sony to develop Little Big Planet 3, which is due for imminent release.
NorthEdge has backed the existing management team, comprising Carl Cavers (CEO), PaulPorter (COO), Chris Stockwell (CFO) and Darren Mills (executive art director) to complete an MBO from Foundation 9 Entertainment, the US entertainment media company which acquired Sumo in 2007.
Director James Hall and investment manager Phil Frame led the deal for NorthEdge. Both will join the board as non-executive directors.
Sumo also has an office in Pune, India, and employs more than 240 people. In the year to December 2013 the company made operating profits of £899, 042 on revenues of £13.2m.
NorthEdge’s James Hall said: “Sumo Digital is a fantastic business, with an incredible reputation and a track record of delivering top titles. The business is working on a number of exciting projects and we look forward to partnering with Carl and the team as they further grow the business, capitalising on opportunities within the marketplace. Sumo has an exciting time ahead and we’re extremely pleased to be on board.”
Deloitte provided advice to Northedge Capital, including lead advisory, financial and tax due diligence and commercial due diligence. Addleshaw Goddard provided legal advice.
The Quinn Partnership provided management due diligence. Intuitus provided technical due diligence and Hendersons provided insurance due diligence. Banking facilities were provided by Barclays in Manchester.
The vendors were advised by the Manchester office of tech-focused investment bank GP Bullhound.
