Invests in Edge Case, alongside China's Seasun
5 November 2015
Mercia Technologies PLC
£1.5m investment into Edge Case Games alongside £1.0m from China's Seasun Games
Mercia Technologies PLC (AIM: Merc, "Mercia"), a Midlands-based investment group building, funding and commercialising technology businesses in the UK, has completed the second tranche of a total £1.5m investment into Edge Case Games ("Edge Case"), the developer and publisher of the PC-based tactical space combat game, Fractured Space. At the same time, Edge Case has reached a strategic partnership with the major Chinese software publishing house and top developer, Seasun Games Corporation Limited ("Seasun Games"). Seasun Games has also agreed to invest £1.0m alongside Mercia Technologies' capital in Edge Case.
Edge Case launched Fractured Space, through Steam's gaming marketplace "Early Access" platform in Alpha form in November 2014. The launch generated 400,000 users in the first five months, and the team is now working towards a full commercial launch in early 2016 on other platforms.
Seasun Games is a leading Chinese games publisher whose parent, Kingsoft Corporation Limited ("Kingsoft"), is listed on the Hong Kong Stock Exchange (HKEX: 03888) with a market value of approximately HKD 24bn. Seasun Games has introduced titles such as Relics of Gods and the popular MMORPG series JX that has grossed more than $500m and has achieved a monthly active user count of 4.5m.
China is now the largest games market in the world, overtaking the United States last year, with sales of mobile games in China expected to reach $5.5bn this year, up from $3.3bn in 2014, according to a report by Niko Partners published in September 2015. The market size is expected to increase to $11.1bn by 2019.
Edge Case is an exemplar of the Mercia model - a direct investment ("emerging star") which has evolved from Mercia's third party funds under management, leading to this exciting partnership with Seasun Games. Mercia has worked closely with management, supporting and accelerating development from a team of two at initial investment to a team of over 30 today. This direct investment of £1.5m alongside £1.0m from Seasun Games will help scale the business globally.
Mark Payton, CEO of Mercia Technologies, said:
"We are delighted to continue to support Edge Case Games as it moves across the group to join some notable direct holdings of ours within the Mercia Technologies digital portfolio. The company benefits from a highly experienced and dedicated team, strong management and successful initial commercial traction.
"With a key strategic partnership now in place with Seasun Games, we are confident that Edge Case Games will gain a strong foothold in the emerging and expanding markets of Asia."
James Brooksby, CEO and Co-Founder of Edge Case Games, said:
"This latest injection of funding from Mercia and our strategic partnership with Seasun Games means that Edge Case is ideally placed to take advantage of the explosive global growth in free to play games, across multiple platforms.
"We look forward to continuing to benefit from the expertise and experience of the Mercia team, as we develop our business and expand into new global markets."
For further information contact:
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Mercia Technologies PLC (www.merciatechnologies.com) |
+44 (0) 330 223 1430 |
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Mark Payton, Chief Executive |
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Martin Glanfield, Chief Financial Officer |
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Cenkos Securities |
+44 (0) 20 7397 8900 |
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Ivonne Cantu / Mark Connelly (Nomad) |
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Instinctif Partners |
+44 (0) 20 7457 2020 |
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Kay Larsen / Lauren Foster |
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Note to editors
Mercia creates, funds and develops technology businesses nationally with an emphasis in the Midlands, the North and Scotland. It brings technology transfer, company formation, incubation, commercialisation and investment to technology ventures. Approximately 50% of its investments derive from university spinouts. Mercia invests across key technology sectors in which it has deep sector expertise.
The Mercia model is one of patiently nurturing businesses through its tax efficient third party funds under management, and then scaling them with direct investment at the point of commercial traction. Through this, Mercia has a well seeded portfolio and pipeline of investments - its 'emerging stars'.
Mercia's shares started trading on AIM on 18 December 2014 and since then up until 31 July 2015, Mercia has invested almost £15m directly across its portfolio of emerging stars, which in themselves have attracted a total investment of over £70m alongside investment from the Group to date. In addition to its direct investments, Mercia (via Mercia Fund Management) has invested over £20m to build its portfolio of potential emerging stars.
About Edge Case Games
Formed in 2014 from the team behind the hit space game, Strike Suit Zero, Edge Case Games brings its expertise and passion for space games to its inaugural title, the tactical space MOBA, Fractured Space. Based in the gaming development hotbed of Guildford, UK, the team is dedicated to expanding the scope and scale of space-based gaming through an open development philosophy that leverages the enthusiasm of the gaming community.
Edge Case Games was formed by industry veterans James Brooksby and Chris Mehers, whose previous space action game, Strike Suit Zero, was launched in January 2013, attracting an audience of over 1.4m players on PC and console.
About Fractured Space
Fractured Space is team-based space combat fought in gigantic capital ships with the intensity of a shooter and the big-picture-thinking of a strategy game. Fractured Space is currently available for PC on Steam Early Access and is set for a wider free-to-play release in 2016.
About Seasun Games
Founded in the mid-90s under Kingsoft Corporation Limited (HKEX: 03888), Seasun Games were pioneers of the online gaming industry in China. The Company planted its roots in the PC game era, with its first online game debut in 2003. Since then, Seasun Games has become an iconic brand of the martial arts genre with a diverse plethora of game studios and development platforms. It currently runs more than a dozen of self-developed online games, including the JX series, which have successfully expanded into Asian markets. It also holds the honour of developing one of the most cutting-edge 3D engines. In a bid to further its endeavours, Seasun Games is currently exploring opportunities in casual games in the mobile game landscape.
This information is provided by RNS
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