Harry Potter: Hogwarts Mystery outfit Jam City is set to benefit from a $145 million windfall from a strategic financing deal.
Jointly leading the investment is JPMorgan and Bank of America Merrill Lynch, alongside a syndicate of lenders including Silicon Valley Bank, SunTrust Bank and CIT Bank.
According to Jam City the money will be used to support the developer’s acquisitions and global growth initiatives.
“In a global mobile games market that is consolidating, Jam City could not be more proud to be working with JPMorgan, Bank of America Merrill Lynch, Silicon Valley Bank, SunTrust Bank and CIT Group to strategically support the financing of our acquisition and growth plans,” said Jam City CEO Chris DeWolfe.
“This $145 million in new financing empowers Jam City to further our position as a global industry consolidator.
“As we grow our global business, we are honoured to be working alongside such prestigious advisers who share Jam City’s mission of delivering joy to people everywhere through unique and deeply engaging mobile games.”
Banked to the hilt
As to why Jam City felt the need to raise as much as $145 million, company COO Josh Yguado (Pictured, main) told PocketGamer.Biz that it is required to fuel the company’s growth globally.
“Following a ground-breaking 2018, which included the launch of Harry Potter: Hogwarts Mystery, our multi-year deal with Disney and a significant expansion to studios in Toronto, Bogota and Glendale, we’re continuing to pursue a focused, but ambitious, growth strategy,” said Yguado.
“As we enter 2019, we are focused on the development and acquisition of game properties that have global appeal, much like our flagship franchises Cookie Jam, Panda Pop and Genies & Gems.
“This financing round will fuel our continued growth, as we continue to deliver great entertainment experiences to our players.”
On why Jam City is doubling down on an aggressive M&A strategy, Yguado tells us it’s to help the company consolidate in a time of growth.
“The mobile games sector is growing - in terms of audience, revenue and reach,” he said.
“As the market matures, we’re seeing more and more consolidation. Jam City is strengthening its position as a consolidator in 2019 and beyond.”
Whether this finance had been raised with another deal in mind, however, Yguado could not say.
“I’m not able to share anything specific, but one of the key strengths that we want to continue to nurture is our diverse portfolio,” he says.
“We’re in a unique position, as we are not reliant on one ‘mega-hit’; we have cultivated a portfolio of successful, durable games that have led us to our fifth consecutive year of growth and profitability.”
As to what genres these games will explore, Yguado explains that Jam City will likely aim to maintain it’s midcore expertise, but isn’t adverse to trying new things within that.
“Jam City has a strong track record of success in creating games for casual and midcore audiences,” Yguado explains.
“We always try to strike a balance between working to reinforce our expertise and leadership in established genres, while also exploring new genres, mechanics and storylines.
“We have an exciting pipeline for 2019, 2020 and beyond, with a mix of both familiar and new game features, and some surprises that we can’t wait to share.”