Buyout firms vie for Runescape developer Jagex

Dec 18, 2023

A pack of buyout firms are circling the video game publisher behind the Runescape franchise even as its owner’s hopes of a bumper valuation are beginning to falter.

Sky News has learnt that private equity firms, including Advent International and CVC Capital Partners, submitted first-round offers for Jagex late last week.

Banking sources said on Monday that the bidders were pitching their interest at a valuation of around £800m – well below the £1bn mooted in earlier reports about the sale process.

A number of other large buyout funds are said to have examined offers and decided against submitting bids because of uncertainty about the company’s business plan and development pipeline.

Jagex has been owned by Carlyle since January 2021 and was reportedly considering an initial public offering of the business.

The stuttering IPO environment in London and New York is understood to have prompted Carlyle to switch its attention to an outright sale.

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Runescape is one of the world’s longest-running online video game franchises.

Based in Cambridge and employing hundreds of people, Jagex has had a string of previous owners.

The auction is being run by bankers at Morgan Stanley and Aream & Co, a video gaming boutique adviser.

Carlyle, Advent and CVC declined to comment.

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