Remedy Entertainment is planning an IPO
Finnish dev wants to improve negotiating position and retain IP ownership through Nasdaq First North listing
Remedy Entertainment is planning an IPO on the Nasdaq First North Finland stock exchange; a move that it believes will help drive it toward "a stronger value chain position" within the games industry.
The planned listing and IPO, which Remedy announced this morning, is estimated to take place next month. The company said the main purpose of its plan is to "execute Remedy's growth strategy and cover the company's development and commercialisation expenses."
"We're developing our business in line with our strategy towards a multi-project model, which helps us release high-quality games to the global market more often," said CEO Tero Virtala in a statement. "Our goal is to be one of most renowned game companies in the world."
"Our goal is to be one of most renowned game companies in the world"Tero Virtala, CEO
Remedy has a strong track record of IP creation, including Max Payne, Alan Wake and, most recently, Quantum Break. The stated goal of releasing games "more often" is particularly relevant to Alan Wake and Quantum Break, both of which took five years to reach the market.
Another aspect of Remedy's plan to list on the Nasdaq First North Finland exchange is about ownership. For all the years of work that went into its games, the Finnish company's negotiating position did not allow it to retain control of the IP.
"Remedy is a game company that has mastered the gaming business, creative content production and cutting edge technology," said Remedy founder and chairman of the board Markus Mäki. "A successful game requires experience and skill to build a sustainable brand, as well as comprehensive game development competence and the ability to commercialise games throughout their life cycles. You also need great business relations and solid funding to support all of this."
Remedy saw a 20% rise in its revenue in 2016, and it already has two intriguing projects in development: the first a collaboration with SmileGate on the sequel to its hugely popular FPS CrossFire; the second a still unannounced project known only as "P7."
It will also be returning to PlayStation for the first time since 2003, after announcing that it is developing its Northlight game technology for the PS4. This is in line with a broader strategy to release its games on a wider variety of platforms and devices.
This is the second time this year that a Finnish game developer has looked to an IPO on the Nasdaq First North. In February, Next Games laid out a plan to raise €30 million to support its own expansion goals.