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Kwalee takes 3.58% minority stake in Devolver Digital via new equity placing

Devolver have successfully raised around £7.9 million in new investment through recent moves to boost their balance sheet
Kwalee takes 3.58% minority stake in Devolver Digital via new equity placing
  • The move broadens Kwalee's presence in PC and console
  • "Kwalee has ambitious plans for growth and will invest and work with the leading players in the industry"

UK-based games publisher and developer Kwalee has made an equity investment in developer and publisher Devolver Digital.

Just days ago, on June 2nd, Devolver issued shares to investors in a bid to boost its balance sheet. Following this placing Kwalee have stepped in, snapping up shares in order to hold a 3.58% share in the business. Devolver have now successfully raised around £7.9 million ($10 million) through their equity placing.

“I would like to thank Harry and the Devolver team for giving us the opportunity to invest in such a fantastic brand and category defining games,” commented David Darling CBE, the founder of Kwalee [pictured].

"More balanced growth"

In an official statement the company states that the investment in Devolver was made as a fit with “Kwalee’s broader growth strategy to expand beyond its heritage in hyper casual mobile gaming to achieve more balanced growth”. 

While describing the investment as a “minority investment in Devolver” the move increases Kwalee’s exposure and access to PC and console game production in addition to its own significant standing in mobile.

It’s worth noting that Kwalee’s own moves into the PC/console market are still relatively new with over ten PC console games in development including The Precinct, The Spirit of the Samurai and In Sink alongside the released Robobeat - a game which has earned 97% positive ratings on Steam.

Previously Kwalee made a similar minority investment in French mobile games developer 8SEC in January in order to grow their presence in hybrid casual. The company also launched Hitseeker, it's own publishing platform and laid off 10% of its workforce in April this year as part of a restructuring effort to maximise growth opportunities.

"The economics of the industry are changing"

David Darling CBE adds: “There is no doubt conditions in the gaming industry remain challenging in the near-term but I am confident in the sector’s long-term future. However, the economics of the industry are changing, with an increasing need for scale and financial strength in an industry where access to funding has all but dried up.

"Kwalee has ambitious plans for growth and will invest and work with the leading players in the industry as we pursue our mission to make the most fun games for the world’s players.”