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Sheffield video game developer Sumo Digital completes MBO

Sheffield-based video game developer Sumo Digital has completed an MBO with the backing of private equity firm NorthEdge Capital.

Founded in 2003, Sumo is headquartered in Sheffield with an office in Pune, India, and it employs more than 240 people.

According to the Yorkshire Post, it is NorthEdge’s sixth deal this year. NorthEdge, which operates from offices in Leeds and Manchester, has invested around £80 million into Northern businesses during 2014.

Sumo has developed a number of titles including Forza Horizon 2 for Microsoft’s Xbox360, Sonic and Sega All Star Racing, and Xbox Fitness. Recently, Sumo has partnered with Sony to develop Little Big Planet 3, which is due to be released soon.

NorthEdge has backed the existing management team of Carl Cavers, Paul Porter, Chris Stockwell and Darren Mills to complete an MBO from Foundation 9 Entertainment, the US entertainment media company which acquired Sumo in 2007.

A NorthEdge spokesman said: “The Yorkshire gaming industry is worth tens of millions of pounds to the regional economy, and continues to go from strength to strength.

“The sector is supported by several universities in the region, which are proactive in providing courses and appropriate guidance to students looking to pursue a career in the industry.”

Director James Hall and investment manager Phil Frame led the deal for NorthEdge.

Mr Hall and Mr Frame will join Sumo’s board as non-executive directors. A team from Deloitte comprising Dan Renton, Paul Trickett, Will Johnson, Maninder Minhas, Stuart Cottee, Matt Henderson, Jon Steed, David Aindow and Julie Campbell provided advice to Northedge. Leeds-based Addleshaw Goddard’s Yunus Seedat and Susie Siddall provided legal advice.

This was posted in Bdaily's Members' News section by Clare Burnett .