Acquisitive video games group raises £14m to fund growth
Video games developer Sumo Group has raised £13.7m from institutional investors to fund acquisition opportunities.
Sumo Group is already one of the UK’s largest providers of creative and development services to the video games and entertainment industries, and its strategy has been focused on expansion.
In 2019 it bought Red Kite Games and launched Sumo North West, putting its first base in the region in Warrington, then in May this year it bought Leamington Spa studio Lab42.
It expects more opportunities for acquisitions in the wake of the coronavirus lockdown.
In a statement Sumo Group said: “Given the fragmented nature of the market and opportunities arising from the Covid-19 situation, the group continues to be focused on accelerating expansion through specifically targeted acquisitions.”
The Sheffield-headquartered group now has eight UK offices, including Nottingham and Leeds, as well as India and Canada, employing 750 people.
The group floated on AIM in December 2017 and its share price has enjoyed a strong 18 months, despite a short-lived 25% dip in line with the rest of the market in February and March.
It quickly recovered that drop and last night’s close of 200p was close to an all-time high.
Sumo launched an accelerated bookbuild after the market closed, placing shares that represented 5% of the business at 180p.
It reiterated its previous guidance about its performance, which has benefitted from Covid-19 restrictions that have forced people to stay at home, and said its “trading performance remains comfortably in line with full year market expectations”.