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GCA Altium advises on GBP217m IPO of global games label Team17

Global investment bank GCA Altium has advised video games label Team17 on the completion of its initial public offering (IPO) on the Alternative Investment Market (AIM) of the London Stock Exchange, which included a GBP107.5 million fundraising.  

On admission, Team17 had a market capitalisation of GBP217 million.
This is the second recent IPO led by GCA Altium following the GBP171 million flotation of lifestyle fashion retailer Footasylum, and further expands the investment bank’s record in the digital and gaming space having previously advised on transactions involving Zynga, boohoo and Tidal.
A global developer and publisher of independent, premium video games, Team17 was founded in 1990 and has released over 90 games, including the highly successful Worms franchise. Led by CEO Debbie Bestwick, the group posted revenues of GBP29.6 million for the year ended 31 December 2017 (of which circa 88 per cent were from digital sales), having more than doubled since 2015.
The Team17 float is the latest development in a growing UK games industry. Overall, the combined UK physical and digital sales of video games hit a record GBP3.5 billion last year, an increase of 9.6 per cent. Digital games sales grew 12 per cent to GBP2.6 billion. According to the games industry trade body Ukie, there were 2,175 active games companies in the UK last summer.
The value of the UK games market is almost equal to that of the music and video markets combined – GBP1.1 billion and GBP2.5 billion respectively – despite the rise in popularity of digital services such as Spotify, Netflix and Amazon.
The GCA Altium team was led by CEO Phil Adams, and included Adrian Reed, Paul Lines, Jon Stead, Matthew Furness and Hamzah Shakoor, all based in the firm’s Manchester office.
Phil Adams, CEO at GCA Altium, says: “Team17 has a truly impressive growth story, with a clear point of difference in the market. The group has demonstrated the ability to innovate, with the successful development of its games label model together with its own IP resulting in considerable revenue growth.”
“The UK games industry is growing at a significant rate, with digital games hitting a record GBP1.6 billion sales last year. Team17 is well positioned as a premium label and developer in the indie gaming market and we are sure will continue to prosper as a public company.”

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