By Sarah Favot
Mobile games featuring Harry Potter, Jurassic Park and the Teenage Mutant Ninja Turtles will soon be on the same roster when L.A.-based mobile game publisher Jam City goes public and acquires Montreal-based Ludia, creating a $1.2 billion gaming juggernaut.
Jam City announced Thursday it is going public through a merger with special purpose acquisition company (SPAC) DPCM Capital, which is led by former Uber senior VP of business Emil Michael. The merger will then allow Jam City to purchase Ludia for $175 million.
Jam City co-founder Josh Yguado said market consolidation in the mobile gaming space was the catalyst for the deal.
“If we’re going to continue to be a leader and a consolidator in this space, it’s going to require more dry powder,” Yguado said in an interview. “Raising this money right now enables us to do this deal, and then also have additional, again, dry powder to continue to do more deals in the future,” he said.
The combined company will have about $115 million in cash for other mergers and acquisitions and to develop more original games.