Gametime for developer after £16.5m private equity injection
AN independent video game developer has secured a £16.5m investment from Lloyds Development Capital to fund its major growth plans.
The private equity arm of Lloyds Banking Group has taken a minority equity stake in the Wakefield-based business, Team 17 Software.
Team 17 is behind several successful game franchises including Worms, and yet-to-be-released Yooka Laylee, set for release next March.
The company has already put the money to good use, acquiring UK micro studio Mouldy Toof Studios and its franchise The Escapists, which Team 17 helped to develop and publish.
Based at Calder Island in Wakefield with additional offices in Nottingham, the company enjoyed a “highly successful” year in 2015 and said it was necessary to obtain some investment to further grow the business.
Turnover increased 57% last year, with the business making £10.4m with pre-tax profits of £3.3m.
It can trace its roots back 25 years, but its defining moment came with the publishing of Worms in 1995.
Current directors Paul Bray and Debbie Bestwick undertook a management buy out of the company in 2011 and have focused on identifying developer talent and supporting the growth of their games.
Debbie Bestwick said: “With LDC’s investment and support, we’re now in an even stronger position to continue our growth strategy.
“The team’s experience of supporting businesses that work overseas means they’re well-placed to help us continue bringing the best games to the global market, and with a number of launches in the pipeline we’re set for a busy few months.”
John Garner, director and head of LDC in Yorkshire & the North East, added: “Team17 exemplifies the best of the UK gaming industry, and its unique business model and continued focus on innovative product development has seen Debbie and her management team build an extremely successful company.”
Team17 was advised by Stephen Moore, David Keenan and Charles Gray at PwC, and Paul Mann, Jayne Aarons and Hannah Graham at Squire Patton Boggs.
Financial due diligence was led by Joel Smith at PwC and Debbie Jackson at Walker Morris provided legal advice to LDC on the transaction.
