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Finance

Jagex sells majority stake to VC firm

Mon 09 Jan 2012 4:40pm GMT / 11:40am EST / 8:40am PST
FinanceDevelopment

Now 55 per cent owned by US company Insight Venture Partners

Jagex Games Studio

Jagex Games Studio has developed and self-published over 40 online titles, including the Guinness World...

jagex.com

Runsescape developer Jagex is now 55 per cent owned by Insight Venture Partners, after the firm recently purchased another 20 per cent of the UK company.

Information filed at Companies House on December 23, and reported by The Times, shows that the venture capitalist firm has added to the 35 per cent stake it acquired in 2005, giving it control of the Cambridgeshire developer.

When contacted for comment Jagex refused to discuss the matter, saying it would not be releasing any official statement on the sale.

Insight Venture Partners is a VC firm that has a strong interest in online and software companies, with a portfolio that includes Twitter, Tumblr and Spacetime Studios. MD Jeff Horing and partner Alex Crisses both sit on the Jagex board.

The Times reports that Andrew Gower, co-founder of the develop, has sold his stake in the business to Insight. Gower is also CEO of Fen Research Ltd which is currently working on a new online game.

Jagex earned 45.3 million in the year ending March 2011, with 6.7 million in profits.

UPDATE: Source correctly attributed to The Times Online.

4 Comments

I bet Andrew is a happy man! :)

Posted:2 years ago

#1

Adam Campbell
Associate Producer

1,116 888 0.8
Shocking.

Posted:2 years ago

#2

Bruce Everiss
Marketing Consultant

1,716 598 0.3
This happened a while ago.
Andrew is one of the most successful people ever in the UK game industry and his achievements are under recognised.
He built Jagex to be a great success, but now the company has reached the size where it might be better served with a more corporate approach. This we have seen since Mark Gerhard became CEO and since the buy out he has been driving the company forward and expanding it quite aggressively, witness their recruiting drive in Guilford.

Jagex is one of the few great success stories of the British video game industry in recent years, let's hope it continues. Also let's hope the VCs get a decent return this time to encourage future investment in the industry. The wheels have fallen off some of their earlier involvement.

Posted:2 years ago

#3
How much was the Raine stake reduced to?

Posted:2 years ago

#4

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