Mobile publisher and developer Jam City will become a public company. The SPAC firm DPCM Capital will help him in this. Thanks to the deal, the capitalization of the authors of Harry Potter: Hogwarts Mystery will reach $ 1.2 billion.
A group of investors led by Netmarble, which is a DPCM sponsor, has committed to make investments in the amount of $100 million for a share in a joint future company. The transaction will be completed simultaneously with the merger of businesses. DPCM also has $300 million in its account.
The money received by the new company after the merger will be used to purchase Ludia from Fremantle for $175 million, as well as to provide liquidity to former investors, pay taxes and transfer costs.
After all this, Jam City will have $115 million in its accounts, which will be used for further M&A transactions.
Founder and CEO of Jam City Chris DeWolfe (Chris DeWolfe), as well as the president of the company Josh Iguado (Josh Yguado), will retain his position.
Last year, Jam City and Ludia collectively earned $570 million in revenue (booking). By the end of 2021, the combined company plans to increase the figure to $ 670 million, and by the end of 2022 – to $868 million.
Jam City was founded in 2010 by a former MySpace co-founder. His portfolio includes projects such as Cookie Jam, Panda Pop, Frozen Adventure, Harry Potter: Hogwarts Mystery and about a dozen more titles. Today, the publisher’s games have been downloaded 1.3 billion times, and their total MAU is 31 million people.
Ludia is a Montreal—based mobile publisher that is known for games within the Jurassic World universe.
DPCM Capital is a special purpose acquisition company founded by Emil Michael, former senior vice president of business at Uber.