Harian · May 21, 2021

Jam Metropolis and DPCM Money Announce $1.2B Merger Agreement

Developer of cellular games Jam City is established to turn into the upcoming organization to go general public by way of a merger with a specific goal acquisition firm (SPAC) right after a definitive arrangement with DPCM Cash for the mix was introduced now.

“We believe Jam Town is at the forefront of cellular gaming, and its special Online games-as-a-Support product has tested to maintain player retention and drive monetization.”

Emil Michael, Chairman and CEO, DPCM Money

Going Community on the NYSE

Jam Metropolis and the SPAC will produce a merged company with an organization value of $1.2 billion, and upon closing of the transaction, the combined entity, Jam City Holdings, will record its Class A typical inventory on the New York Inventory Exchange (NYSE) underneath the ticker image “JAM”.

“We hope heading community will offer us with a source of capital to speed up our expansion and advance our strategic priorities, although buying and teaming up with Ludia provides powerful new mental assets and gaming genres to our catalog.”

Chris DeWolfe, Chairman and CEO, Jam City

As shortly as the business enterprise transaction closes, Jam City will use $175 million of the proceeds from the transaction to acquire another cell online games developer agency, Ludia, from Fremantle Media, to provide with each other the Montreal-primarily based recreation creator to enable reinforce further more its have market situation and world wide participant network.

The new entity will be led by the management group at Jam City – Chairman and CEO Chris DeWolfe, Co-Founder, President and COO Josh Yguado and CFO Jae Yu. The Board of Directors will see the addition of previous executive at Bet, Viacom Media Networks and Microsoft Denmark West.

“We feel that online games are the next-generation of social engagement, and that our longstanding interactions in the course of the world-wide gaming ecosystem offer us accessibility to a rich pipeline of untapped, accretive development options that we are poised to capitalize on.”

Josh Yguado, Co-Founder, President and COO, Jam City

Around 65% of the outstanding typical inventory Course A of the combined entity will be held by current stockholders of Jam Metropolis, while Jam City’s strategic trader Netmarble Company will individual a sizeable portion of the mixed firm stock.

Foreseeable future M&A Opportunities in Sight

Netmarble and a group of institutional traders, as perfectly as customers of the merged corporation administration teams, committed to a non-public financial commitment in general public equity (PIPE) to the amount of money of $100 million that is predicted to close concurrently with the combination.

The remaining about $115 million of income on the stability sheet of the blended company entity will be employed to accelerate advancement by building new video games, maximizing its proprietary engineering additional and pursuing M&A prospects, as properly as other strategic initiatives.

The merged enterprise expects to crank out $868 million in bookings and $112 million in modified earnings right before curiosity, tax, depreciation and amortization (EBITDA) in 2022.

The blend, which was permitted by the Boards of Administrators of the two Jam City and DPCM Funds, will now involve the approval of shareholders at the two organizations, and is expected to close later on this yr, subject to other customary closing situations and receipt of selected regulatory approvals.