VR studio acquired in $110m deal as Mercia exits

Patrick O’Luanaigh (Picture credit score: nDreams)

A developer and writer of digital actuality (VR) video games based mostly in Hampshire has been acquired for practically $110m in a landmark deal for the VR video games business. The transaction supplies an exit for Mercia Asset Administration.

nDreams, which specialises in creating and publishing VR video games, is headquartered in Farnborough and was based by Patrick O’Luanaigh in 2006.

Sweden-headquartered gaming funding group Aonic has now accomplished the acquisition of nDreams. It made an preliminary £20m funding into nDreams in March 2022.

nDreams will proceed its trajectory underneath acquainted management, with co-founders Patrick and Tamsin O’Luanaigh (chief govt and chief folks officer respectively) remaining of their positions alongside the remainder of the corporate’s govt workforce.

Patrick O’Luanaigh stated: “We arrange nDreams in 2006, pivoted to focus completely on VR video games in 2013, and we’re happy with every part we have achieved as an unbiased firm.

“After 18 months of working collectively, we’re assured we have discovered the correct companion in Aonic. That is the correct second to welcome their help to strengthen our place even additional, and seize this important second for VR and MR.”

Mercia Asset Administration held a 33.2 per cent direct stake in nDreams, leading to complete consideration of £30.2m break up – £26.4m in money proceeds and £3.8m re-invested into Aonic itself. This exit ends in a 2.7x return on invested capital and an 18.4 per cent IRR.

Mercia’s preliminary funding of £300,000 was made in March 2014 by way of its managed funds.

Dr Mark Payton, chief govt of Mercia Asset Administration PLC, stated: “This commerce sale represents one other worthwhile consequence for Mercia, realising a big return which is above our present holding worth, predominantly in money.  

“This newest profitable exit additional provides to our robust debt free money place, which now stands at circa £60m. We stay up for saying Mercia’s Interim Outcomes on 28 November 2023.”

Julian Viggars, CIO of Mercia Asset Administration and nDreams board member, added: “After we first invested in nDreams we had a excessive conviction within the potential of VR gaming, and this realisation is a robust validation of that thesis.

“We’ve proactively supported nDreams since 2014 and are happy that we’ll proceed to profit from their persevering with development as a part of Aonic, by way of our partial reinvestment.

“We stay up for nDreams persevering with on its thrilling VR and AR journey inside a bigger gaming group and congratulate Patrick O’Luanaigh and his nDreams workforce on all that they’ve achieved to this point.”

Canaccord Genuity is performing as nomad for Mercia, in addition to joint dealer with Singer Capital Markets.


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