Two private equity firms have invested $350m in Germany-based online gaming company Bigpoint to provide a more than-four times return for its corporate venturing backer.
US-based cable company Comcast’s Peacock Equity corporate venturing fund will sell its holding to US-based growth equity investors Summit Partners and TA Associates, whose $350m funding in Bigpoint is the second-largest investment in an online gaming company and gives it an enterprise valuation of more than $600m.
Comcast took over the management of the Peacock fund earlier this year when it acquired broadcaster NBC Universal from US-listed industrial conglomerate General Electric (GE). GE and private equity firm GMT Communications Partners will sell a majority of their stakes in Bigpoint to TA and Summit.
GMT and Peacock jointly bought 70% of Bigpoint in June 2008 from venture capital and angel investors Aurelia Private Equity, European Founders Fund and United Internet Beteiligungen in a deal giving the gaming company a $110m enterprise valuation. As a result, GMT said it had made more than four times its money on its share sale. For Peacock, its reported $40m investment for a 35% stake in Bigpoint was at the time its largest deal from the fund.
Megumi Ikeda, executive director at Comcast Interactive Capital, which now manages the $250m Peacock fund, said: "While we are selling our share, we are very optimistic about Bigpoint’s future and are continuing our operational relationship with them at NBC Universal."
In 2008, Peacock said NBC Universal would partner with Bigpoint on a series of internet browser-based game titles to be featured on its SCI FI and USA Network websites.
The other 30% shareholding is being retained by Heiko Hubertz, chief executive and founder of Bigpoint, who said: "Summit Partners and TA Associates are supporting Bigpoint’s international expansion — a course we set out upon in recent months with the opening of new offices in the United States and Brazil.
"Regarding myself, I kept my share. I see the potential in Bigpoint to exceed a value of $1bn and become the top online gaming company in the world."
Bigpoint now has more than 185 million registered users, compared to 23 million in mid-2008, playing games including Battlestar Galactica Online (pictured), Farmerama and DarkOrbit.
Investment bank Montgomery advised Bigpoint and Noah Advisors acted for Summit Partners and TA Associates.