Popular mobile game developer Jam City is preparing to go public by merging with DPCM Capital, a special-purpose acquisition company.
Acquisition of a game studio is on the way
After the two companies have merged, they will operate as Jam City Holdings and be listed with the acronym code “JAM”. Jam City will use the $175 million to buy Canadian mobile game publisher Ludia.
After all these transactions, a company with a business value of $ 1.2 billion and $115 million in cash that they can use for future investments and acquisitions will emerge. Revenue for 2022 is estimated to be $868 million, up 23% year-on-year, and $112, up 30% in adjusted EBITDA.
Jam City CEO and President Chris DeWolfe said: “We’ve created and expanded one of the world’s leading mobile entertainment platforms by combining art with a powerful technology platform that uses data to support user acquisition and live game operations.”
“Buying Ludia and working together will add attractive games to our catalog, as we expect going public to provide us with a source of capital to accelerate our growth and advance our strategic priorities.”
The current shareholders of the company are expected to have 65% of the outstanding A-class shares. Netmarble will own a significant portion of the combined company.