October 17, 2019
Digital Media and Media
GCA Altium advises NorthEdge on the acquisition of Catalis
GCA Altium acted as M&A and debt advisor to NorthEdge Capital on the acquisition of Catalis Group, one of the UK’s leading independent video games companies, in a deal that values the business at £90 million.
Funds managed by NorthEdge invested for a majority stake alongside management including CEO Dominic Wheatley and existing investor Vespa Capital.
Catalis provides a range of services into the high growth, global video games market through two divisions: Curve Digital and Testronic. Curve is an award-winning publisher of independent video games across all major console and PC platforms with a catalogue of titles including Human: Fall Flat, which has sold in excess of 7 million copies to date. Testronic provides quality assurance services to the global games publishing and film and TV markets. The business has experienced rapid expansion and now employs over 1,000 people across its headquarters in London and offices in Los Angeles, Warsaw, Santiago, Brighton, Croydon and Bangkok.
Phil Frame, Director and Head of North West at NorthEdge Capital, said: “We are pleased to complete the investment into Catalis and to be partnering with Dominic and team. They have an outstanding record of growth and have built a business of scale, operating on a global basis and with a first class reputation in the market. The Catalis team have demonstrated a strong understanding of the market dynamics and the model they have developed is ideally positioned to capitalise on this opportunity. 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. 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 year.”
Simon Lord, Managing Director at GCA Altium, said: “This was an extremely complex transaction, bringing to bear all of our capital markets, M&A and debt advisory capabilities to good effect. The gaming space is proving increasingly attractive to the global investment community – this is our 3rd transaction in the last 18 months in the UK alone, having also advised on the IPO of Team17 and Mediatonic’s investment from Synova Capital. Catalis will continue to thrive in partnership with NorthEdge across both its games testing and publishing businesses. We look forward to its exciting future as it continues to build its global footprint and further develop its valuable IP.”