Northedge snaps up UK video games firm Catalis in £90m deal
Private equity group Northedge Capital has bought London-based video games company Catalis in a deal valuing the firm at £90m.
Northedge has invested £46.6m in Catalis, while major backer Vespa Capital and chief executive Dominic Wheatley have reinvested their shareholdings in the company as part of the transaction.
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Catalis publishes a range of independent video games across PC and games consoles, including hit puzzle game Human: Fall Flat, which has sold more than 7m copies to date. The firm also operates a quality assurance service to the global gaming, TV and film markets.
“Bringing NorthEdge in to help us grow and continuing to enjoy the support of Vespa Capital is a strong endorsement from two private equity houses,” said boss Wheatley.
“Our ambition is to build the next major UK owned games business to rival those based in other parts of the world. We have the right team and financial backing to take Catalis to the next level.”
As part of the deal, Northedge has pledged to provide follow-on capital to support the global expansion of the firm’s testing business, including the opening of new offices in New Orleans.
The funding will also support Catalis’s development pipeline, with a string of new releases due in the coming months, including games based on Netflix show Narcos and hit BBC show Peaky Blinders.
The deal marks only the second investment in the video games sector by Northedge, which manages £650m of private equity funds. The group previously backed the management buyout of Sumo Digital, the firm behind the Sonic series.
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“We look forward to working with the team at Catalis to further build on its international footprint, supporting its growth both organically and through acquisition,” said Phil Frame, director and head of north west at Northedge.
“This strategy, which will commence with the imminent launch of a new site in New Orleans, will allow us to strengthen the company’s foothold in key markets such as Europe, North America, and Central America, and ultimately build market share in a sector valued at $135bn a (£107bn) year.”
Main image credit: Catalis