The Carlyle Group Inc. is considering options for Jagex, a UK-based video games maker that could be valued as high as £1 billion.
Carlyle is working with advisers at Morgan Stanley and Aream & Co. to explore a sale or a listing of the Cambridge-based studio, which runs the popular fantasy video game RuneScape.
The process is in the early stages, and Carlyle is expected to proceed with an auction process towards the end of the year.
Jagex was acquired by Carlyle in January 2021 for a reported $530 million. Jagex’s annual earnings before interest, tax, depreciation and amortisation (EBITDA) stand at about £60 million and are expected to increase by more than 10% next year. The company could fetch up to 15x EBITDA, or between £900 million and £1 billion, in the event of a sale.
Potential buyers are likely to include private equity firms, which could use Jagex as a platform to buy a string of smaller companies within the sector. The sources cautioned that a deal is not certain and is subject to market conditions. Officials from Carlyle declined to comment, and Jagex, Morgan Stanley, and Aream did not immediately return requests for comment.
Jagex is known for its flagship MMORPG, RuneScape, which has global popularity with a large player base. The company has a community-focused development ethos and is known for its innovation in game development, particularly in the areas of mobile devices and cross-play functionality. Jagex also has game production teams and third-party publishing capabilities.
Carlyle’s potential sale of Jagex is part of its growth strategy to increase revenue and expand its portfolio. Jagex’s lifetime revenue franchise and player accounts make it an attractive investment for private equity firms. If the sale goes through, it will mark a significant change for Jagex, which has been a privately owned company since it was founded in 2001.
Frequently Asked Questions
Where is Jagex headquartered?
Jagex LIMITED is headquartered in Cambridge, United Kingdom. The company is known for developing and publishing the popular online game, RuneScape.
What is the revenue of Jagex LIMITED?
As a privately held company, Jagex LIMITED does not publicly disclose its revenue figures. However, according to sources, the company could be valued as high as 1 billion pounds ($1.25 billion).
What other companies does the Carlyle Group own?
The Carlyle Group is a global investment firm that has invested in various companies across different industries. Some of the other companies owned by the Carlyle Group include Acosta, a sales and marketing agency, and Logoplaste, a plastic packaging manufacturer.
Who is the CEO of RuneScape?
The current CEO of Jagex LIMITED, the company behind RuneScape, is Phil Mansell. Mansell has been with the company for over 10 years and has held various leadership positions before being appointed as CEO in 2019.
What was the sale price of RuneScape?
There is no publicly available information on the sale price of RuneScape. However, in January 2021, the Carlyle Group acquired Jagex LIMITED, the company that owns RuneScape, from its previous Chinese owners.
Is Jagex planning to sell RuneScape?
There is no official announcement from Jagex LIMITED regarding the sale of RuneScape. However, according to sources, the Carlyle Group is weighing options for the UK video games maker and may consider selling it in the future.
