LDC earns £40m from games developer share sale

LDC has sold a £40m stake in games developer Team17 as it continues its highly-successful exit.

The investor has now raised £75m in share sales in the last 13 months and still holds a stake worth £10m.

LDC backed the company in September 2016 and has been its partner through very strong growth and an IPO.

Last month the developer announced pre-tax profits had more than doubled to £19.2m on the back of a 43% rise in revenues in 2019.

Team17 has enjoyed a strong first two years as a public company, having floated in May 2018 at 165p per share. Its shares rose past 300p last autumn and have soared since, closing last night at 625p.

LDC’s share sale was executed at 575p. It sold 5.2% of the company through an accelerated bookbuild process.

The share sale represented 5.2% of the company’s shares, and 80% of LDC’s holding. LDC now has a 1.3% stake remaining.

The investment has been a huge success for LDC. It bought a 33% stake in 2016 for £16.5m, before selling half as part of the company going public.

It has also sold a £16.4m stake in March 2019 and a £19.2m stake in November.

Team17 has enjoyed phenomenal growth since LDC’s investment. In 2016 it had annual revenues of £13.5m, which have since quadrupled in four years.

Team17 was founded in 1991 and made its name with the iconic Worms franchise. It creates and sells a range of successful titles worldwide through major digital distributors such as Sony, Microsoft, Steam, Apple and Google.