28 Nov 2019
Tencent acquired 10% of Sumo Group plc (“Sumo”) from Perwyn who retain a 17.3% stake. Zeus Capital acted as broker to Perwyn on the transaction.
Sumo is one of the UK’s largest providers of creative and development services to the video games and entertainment industries. The group delivers full-service visual and development solutions, including initial concepts and pre-production, production and development and post-release support.
Tencent is one of the world’s leading internet companies. Tencent connects hundreds of millions of Internet users every day. It operates communications and social platforms, digital content (including online games, video, literature, music, and media), payment and cloud businesses. Tencent is the world’s largest game developer and publisher by revenue. It has invested in several innovative and successful game developers and publishers globally.
I would like to thank Perwyn, once again, for their original investment and for their ongoing support of the business.
We are now a public company and, following the recent announcement of our new studio in Warrington in the north west of England, now have ten studios in three countries and reported revenue of more than £38m for the year ended 31 December 2018.
When Perwyn invested in Sumo Digital in September 2016 we were a private company with annual revenue of around £24m and operated from three studios in two countries.
We are delighted that Tencent have chosen to acquire a shareholding in the Company, and we look forward to working with Tencent to explore co-development opportunities.
Carl Cavers founder and CEO at Sumo Group
We felt this particular trade made sense strategically for ourselves and the company and are excited about the future with Tencent as a shareholder alongside us. Perwyn remains a highly supportive long term shareholder of Sumo. We are under no pressure to sell down given our structure as a privately funded, evergreen investor without traditional fixed time limits.
Andrew Wynn founder and managing partner at Perwyn
We are delighted to have executed this transaction on behalf of Perwyn. The shares have performed well, up c.60% since we floated the company in December 2017. Having Tencent as a significant shareholder is a positive step for the company as they explore future collaborations and co-development opportunities.
Benjamin Robertson Head of Equity Capital Markets at Zeus Capital