US-based mobile entertainment company Jam City has received $350m in equity and debt financing from investors including mobile game publishers Netmarble and Kabam.
The round was filled out by asset manager Fortress Investment Group and the proceeds were partially used to complete the acquisition of mobile game studio Ludia from Fremantle, a television production subsidiary of media group Bertelsmann, for $165m.
Jam City develops a wide range of mobile games, some in collaboration with entertainment and film studios. Ludia’s current and upcoming portfolio includes game titles based on cinematic franchises like Jurassic Park as well as DC and Disney-inspired games.
For Jam City, which said it has experienced double-digit compound annual growth in both revenue and bookings in the five years through 2020, the Ludia deal forms part of the plan to grow its portfolio of games studios.
The deal was originally announced in May 2021, when Jam City still had its eye on a reverse merger with special purpose acquisition company DPCM Capital that would have valued the combined company at $1.2bn, only for it to be called off in July due to market conditions.
Netmarble had previously invested $130m in Jam City in 2015, when the latter still went by its old name, SGN Games. Jam City subsequently raised $145m in debt financing in 2019 from a banking syndicate led by JP Morgan and Bank of America Merrill Lynch that included CIT Bank, Silicon Valley Bank and Truist Securities.
Chris DeWolfe, Jam City’s co-founder and chief executive, said: “The synergy between Ludia’s imagination, polish and innovative game mechanics with Jam City’s data science platform creates the perfect marriage between our two companies and adds significant value to their deep, rich entertainment experiences.
“The latest round of funding solidifies our strategy of acquiring great companies across the globe and heavily investing in our current studios to build enduring entertainment experiences that rival blockbuster Hollywood hits.”
