Private equity firm Supernova Capital has increased its holdings in gaming via the acquisition of two games developers, Mi-Clos Studio and Little Red Dog Games. The firm, based in London, has taken entire ownership of the studios through these acquisitions, including IPs such as Out There and Rogue State.
Terms of the deal remain undisclosed.
Growing through acquisition
Both Mi-Clos and Little Red Dog Games have plans to grow significantly through the acquisitions and further details are expected to be announced soon. They also have deals with Supernova-owned Modern Wolf, a strategy games publisher considered to be the deals’ point of origin.
Prolific entrepreneur Paul Wedgwood is CEO of Supernova, which recently revealed an annual profit of $130 million after only four years of trading. He commented on the acquisitions: "What can feel like ‘selling your baby’ can actually be traumatic for founders. I sold my own studio after almost twenty years, so I have real empathy for the management teams. It also qualifies us to judge, and I have been super-impressed with the amazing quality of their games, and the highly capable teams they have both built."
The two acquired studios are based in different parts of the world; Mi-Clos is a French studio behind marquee brands like Sigma Theory and Out There, with an emphasis on narrative, non-violent games using unique art styles.
"This is an emotional moment for me. We started as a one man studio back in 2010, and have grown organically ever since. The new partnership we have with Supernova is a genuine win-win for us both. It will empower us to continue developing existing IPs and new ones from our unique creative vision on an even larger scale," said Mi-Clos Studio CEO Michael Peiffert.
"We'll also be able to hire more talent while continuing to develop our great work environment. This partnership sets the stage for some exciting new developments. Watch this space!"
Little Red Dog, meanwhile, is based in New York and is known for Precipice and Rogue State. Company CEO Ryan Hewer said: "Joining Supernova realised a life-long dream to take on bigger and more ambitious projects with our unique style, and Supernova was the perfect fit for us. We are incredibly excited to show off what we’ve been able to accomplish with the guidance and support of their experienced mentors."
Earlier this month, Merge Inn developer Original Games acquired Mergedom from Turkiye-based Bigger Games.