£20.1m investment in VR game developer

Mercia Asset Management has completed a £20.1 million third-party investment round in virtual reality game developer and publisher, nDreams.

The investment comes from Aonic AB, a Stockholm-based video game investor. The company will support nDreams with specialized technology and infrastructure to enable them to maintain their independent identity and creative freedom.

Following this investment round, Henley in Mercia, based in Arden, now owns a fully diluted 33.2% direct stake in nDreams, valued at £25.8m. This is an increase of £8.1m from its September book value.

nDreams virtual reality games include Phantom: Covert Ops, Fracked, and Far Cry VR: Dive Into Insanity. He says he has a pipeline of future projects already in development, including games for the PlayStation VR2.

It also recently expanded its development capabilities by announcing two new studios, nDreams Studio Orbital and nDreams Studio Elevation. In August 2021, nDreams appointed former Codemasters CEO Frank Sagnier as non-executive chairman.

Julian Viggars, CIO of Mercia Asset Management and Director of the Board of Directors of nDreams, said: “This is an important development for nDreams and will further strengthen its position as a leading studio in the virtual reality.

“Aonic’s investment is also an indicator of the potential scale of VR technology and nDreams is well positioned to seize the opportunities this presents. This significant increase in fair value is another example of the underlying potential for value creation in our direct investment portfolio, which is now recognized by co-investors and acquirers.

Patrick O’Luanaigh, co-founder and CEO of nDreams, said: “This investment is a pivotal moment for nDreams, and I am delighted to now have the combined support of Mercia and Aonic, who share the same ambitious vision as us. . . This investment is the rocket fuel needed to accelerate our rapid growth as virtual reality continues its trajectory to become a truly mainstream technology.

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