EVR share price leaps after announcing Microsoft “collaboration”

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Virtual reality is set to be the fastest growing area within the media sector over the next five years according to a report by PwC (Source: Getty)

Shares in UK virtual reality firm EVR leapt by nearly a fifth in morning trading after announcing a global partnership with Microsoft.

The Aim-quoted firm said its subsidiary MelodyVR would “collaborate” with the US tech giant across all Windows Mixed Reality devices. In return, Microsoft will provide MelodyVR with “funding and technical expertise”.

By lunchtime, shares were trading over 17 per cent higher than yesterday's close.

EVR chief executive Anthony Matchett said:

We view this agreement as providing recognition and validation, from one of the world's largest companies, of the quality and opportunity that MelodyVR represents for music fans, VR users and our shareholders alike.

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The VR device market is developing an exponential rate, Matchett said. Microsoft are entering the marketplace to challenge the hardware and software firms such as Apple, Facebook, Google, HTC, Samsung and Sony.

Last week, a report by accountants PwC predicted the VR sector would be the fastest growing area in Britain's media market. It estimated the VR market will grow at an annual rate of 76 per cent over the next five years.

By 2021, PwC said, there will be 16m virtual reality headsets in the UK. The majority of these, some 12m, will be attached to mobile devices.

Read more: Virtual reality sector primed for UK hyper-inflation