HELSINKI/FRANKFURT | Wed May 26, 2010 10: 29 am EDT
HELSINKI/FRANKFURT (Reuters)-British venture enterprises Summit partners and TA Associates is to buy a majority stake in German online games Bigpoint for 350 million dollars, hoping to tap into strong demand for free games on the internet.
Bigpoint, employing more than 700 and offer games such as "seafight" and underwater adventure "deepolis" is said, more than 185 million registered users for the games you can play directly from your internet browser and require no download.
Estimates are based on U.S. ABI that industry gaming will grow more than 20 billion dollars in 2012, challenging the traditional makers of video games such as Electronic Arts (ERTS.O) and UBIP (from Ubisoft.PA) and material decisions peers such as Nintendo (7974. OS) and Sony Corp. (6758. T).
John Meeks, a Director at TA Associates, said: "we look forward to make this investment in the Bigpoint with Summit partners," Adding TA Associates expects to continue the course of Bigpoint's development.
Heiko Hubertz, Chief Executive and founder of Bigpoint, told Reuters that the money from the transaction will not go to the company, but investors GMT and Comcast Interactive capital's Peacock equity fund, which, together with GE (GE.N), had bought into the company in 2008.
"But of course, is a great victory for Bigpoint to have these renowned and economically strong investors on board, which can also help us about how our further expansion," he added.
GMT--said investors would get back more than four times their initial investment within the deal--and GE will remain shareholders in the company, while founder Heiko Hubertz will hold 30 percent share.
"My play is not for sale. I will remain part of the company in the long term. I think this is an opportunity to receive only once in a lifetime, "Hubertz said.
(Tarmo Virki Reporting in Helsinki and Christoph Steitz Frankfurt. Edit by Dan Lalor and Jon Loades-Carter)
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