6 August 2018
NorthEdge Capital has announced the first investment from its recently closed NorthEdge Capital SME Fund I, backing award-winning cloud services specialist iPortalis with a multimillion-pound growth capital investment to support its global expansion.Find out more
NorthEdge’s proximity and local decision making has been a great advantage given the pace at which our business has evolved.
CEO at Sumo Digital
Sumo is one of the UK’s leading developers of video games and interactive entertainment products. Working in partnership with top tier publishers including Sony and Microsoft, the business has produced AAA franchises including Little Big Planet 3, Forza Horizon 2 (Xbox 360) and Disney Infinity 3.0, which have sold millions of copies worldwide.
NorthEdge was attracted to Sumo because of its competitive position, publisher relationships and track record of delivering leading titles across a range of platforms. The management team has a very strong reputation in the industry and the business is well placed to capitalise on market growth.
NorthEdge supported the management team, led by CEO Carl Cavers, in acquiring the business from US based Foundation9 in November 2014. Following the MBO, Sumo increased its headcount from 240 to 340 across its UK and Indian offices and in March 2016 launched a new Nottingham studio.
Since the investment from NorthEdge, revenues increased by 60 per cent and profits have more than doubled, underpinned by an expanding client base and investment into the in-house technology engine.
NorthEdge Capital announced the sale of Sumo Digital to private investment firm Perwyn in September 2016.
The transaction was NorthEdge’s second exit of 2016 following the IPO of Accrol Group Holdings and represents a 4.4x return on investment for NorthEdge Capital Fund I in less than two years, generating an IRR of 114 per cent.
Andy Ball, Partner at NorthEdge Capital, said: “Sumo is a great example of a northern business delivering digital services to a global, blue chip client base and it has been a pleasure to work alongside a first class management team during a very exciting growth period. The business has developed into a genuine market leader and the quality of the current project pipeline is testament to the creative and technical expertise of its people. We are delighted to have been a part of the journey so far and look forward to seeing Sumo continue its development in partnership with Perwyn.”
Carl Cavers, CEO at Sumo Digital, said: “NorthEdge has been an excellent partner for Sumo, supporting the business with both capital and expertise to help us achieve our growth ambitions. Their proximity and local decision making has been a great advantage given the pace at which we have evolved. The launch of our new Nottingham studio has enabled us to attract some world class talent and the investment into our Indian operation has broadened the expertise of the local team to include software engineering as well as art content.”