New York venture capital firm Insight Venture has increased its stake in Jagex Games Studio from 35 per cent to 55 per cent, effectively transferring control of the RuneScape developer from the UK to the US.
Jagex co-founder Andrew Gower is believed to have earned millions by selling his ownership of the business to Insight last year, but the impact of the controlling purchase on company equity has only now been declared.
Jagex agreed to settle £2.5 million in expenses as part of the deal, according to financial documents seen by Develop.
Cambridge-based Jagex, winner of best developer at the Golden Joystick Awards in 2009 and 2010, is purportedly the UK’s biggest independent developer, thanks largely to the browser-based RuneScape, which it says is the world’s biggest free-to-play MMOG with over 100 million players.
In 2009 it was named one of the UK’s fastest-growing tech firms after sales revenue grew 600 per cent between 2005 and 2008.
Jagex reported profits after tax of £6.7 million in the 12 months ending March 2011.
Source: Develop