Team17 Software Limited secures £16.5m equity investment to fund growth

Team17 Software Limited, the Wakefield-based independent video game developer and publisher, has secured a minority equity investment from Lloyds Development Capital (LDC), the private equity arm of Lloyds Banking Group.

The transaction sees LDC invest £16.5m into Team17 to fund future expansion; with the first step being the combination of Team17 with Mouldy Toof Studios, the developers of The Escapists franchise, as part of the transaction.

Team17, which also has an office in Nottingham, has been involved in a number of successful games franchises, such as the Worms series, The Escapists and the Yooka Laylee.

The business has seen growth in both revenue and profitability following a 2011 management buy-out, which established its model of identifying developer talent and supporting them through the process of publishing games.

Debbie Bestwick MBE, Team17 CEO and founder, said: “In LDC we have a partner that not only shares our vision, but also understands the importance of people to our business model. People are the foundation of the gaming industry and as both a developer and a publisher, it’s incredibly important that we continue to nurture new talent and fully support our partners, helping to grow sustainable studios and create successful IP.

“With LDC’s investment and support, we’re now in an even stronger position to continue our growth strategy. The team’s experience of supporting businesses that work overseas means they’re well-placed to help us continue bringing the best games to the global market, and with a number of launches in the pipeline we’re set for a busy few months. This is an exciting time for Team17, and I’m looking forward to working together with LDC as we take our business to the next level.”

Team17 was advised by Stephen Moore, David Keenan and Charles Gray at PwC, and Paul Mann, Jayne Aarons and Hannah Graham at Squire Patton Boggs. Financial due diligence was led by Joel Smith at PwC and Debbie Jackson at Walker Morris provided legal advice to LDC on the transaction.

Stephen Moore, head of corporate finance for PwC in Yorkshire, added: “Team17 is a fantastic business with an excellent track record in its industry and strong growth potential.

“With investment from LDC, Team17 has the financial support to expand its portfolio of titles and continue to identify and promote the best in video gaming content.

“We wish the management team, Debbie and Paul, the very best as they embark on their next stage of the business’ growth.”

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