Zeus Capital leads £13.7m Sumo Group (SUMO.L) fundraise

Sumo Group, the award winning creative and development service provider to the video games and entertainment industries, has announced a successful placing of £13.7m, in a deal led by investment banking boutique Zeus Capital.

Listing on London’s Alternative Investment Market (AIM) in December 2017, on which Zeus Capital acted as nominated adviser and sole broker, Sumo Group’s operating businesses include Sumo Digital and Atomhawk. Sumo Digital, the primary business, is one of the UK’s largest independent developers of AAA-rated video games, whilst Atomhawk is a multi-award winning visual design company servicing the games, film and visual effects industries, acquired in June 2017.

Since completing the IPO in 2017, where Sumo Group had a market capitalisation of £145m, the company has continued to grow, both organically and through acquisition, with studios now across the UK, India and Canada. As a result, Sumo Group’s market capitalisation has grown to be currently in excess of £275m.

The Group intends to use the net proceeds of the placing to take advantage of potential M&A opportunities that may arise. Given the fragmented nature of the market and opportunities arising from the Covid-19 situation, Sumo Group continues to be focused on accelerating expansion through specifically targeted acquisitions.

A team at Zeus Capital, comprising of directors of corporate finance Andrew Jones and Richard Darlington, corporate finance associate Ed Stevenson, corporate finance analyst Matt Hogg and director of equity capital markets Benjamin Robertson, acted as joint bookrunner, joint broker and nomad on the transaction.

The new shares have been admitted to trading on the London Stock Exchange’s AIM market on 21st July, with the placing representing five per cent of the enlarged share capital.

This web page constitutes a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 and has been approved by Zeus Capital Limited, which is authorised and regulated by the Financial Conduct Authority