May 23, 2018 | Deals

GCA Altium advises Team17 on its IPO

GCA Altium acted as financial advisor and ongoing NOMAD on the IPO of Team17 Group Plc, a leading UK-based video games label for independent developers. The company was backed by a minority investment from LDC in 2016.

The IPO valued the business at £217 million and has raised gross proceeds of approximately £107.5 million for the company and the selling shareholders, with the first day of dealings in the shares on AIM taking place today. The IPO will enable the company to invest in its future expansion, enhance its profile and provide the ability to incentivise key employees. This is the second recent successful IPO led by GCA Altium following the £171 million IPO of Footasylum in November 2017.

Team17 supports both owned first party and third party intellectual property (IP) in the development and publishing of games across multiple platforms by partnering with independent developers globally. The group’s portfolio comprises over 90 games, including the iconic and well-established Worms franchise, as well as Overcooked and The Escapists. Founded in 1990, Team17 has long established relationships with major video game platform operators including Sony, Nintendo, Microsoft, Steam, Apple and Google.

In 2017, digital sales represented 88 percent of Team17’s revenue. Digital distribution enables game publishers to constantly iterate their initial game releases, release additional downloadable content with new levels and features, and utilise dynamic pricing, all of which are strategies used by Team17 as part of its approach to lifecycle management.

Team17 has a proven senior management team with over 140 cumulative years of experience in the gaming industry. Its internal creative studio has won numerous awards for its own IP and has a broad range of skills, relating to cross-platform development and other added value resources such as code, art, audio, design, QA and usability.

Phil Adams, CEO of GCA Altium, said: “Team17 has a truly impressive growth story, with a clear point of difference in the market. The group has demonstrated the ability to innovate, with the successful development of its games label model together with its own IP resulting in considerable revenue growth. There are over 2,000 video games companies in the UK, at the heart of a thriving industry where digital games hit a record £1.6 billion sales last year. Team17 is well positioned as a premium label and developer in the indie gaming market and we are sure the business will continue to prosper as a public company.”

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