God save the green: Deal makes Jagex a US company
Jagex is trading up the Union Jack for the Stars and Stripes, as controlling interest in the studio has changed hands to a US firm.
Insight Venture Partners, a venture capital firm from the US, completed a deal last year to increase its ownership to 55% of the UK-based company. Previously, the firm had 35% interest in Jagex. Now that the scales have tipped to the new ownership, this technically makes Jagex a US-controlled company and has US investors leading its board of directors.
While revenues were up 2% for Jagex in 2011, both operating and net profits were significantly down from the previous financial year. Jagex is a major player in the MMO free-to-play market, with RuneScape, Transformers Universe, and 8Realms as part of its project portfilio.
Develop reports that the controlling interest was made possible by Jagex co-founder Andrew Gower selling off his ownership claims to the firm for $115.65 million. As part of the deal, Jagex paid $3.85 million in expenses. The studio will remain in Cambridge while its controlling firm is in NYC.
