NorthEdge agrees to acquire Catalis at £89.8m valuation

Katharine Hidalgo
15 August 2019

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NorthEdge has offered ТЃ95.13 in cash per share for Catalis, valuing the video games and digital content company at ТЃ89.8m.

The offer represents a 179.6% premium on the last price of €44 per share prior to the company's de-listing in 2018. The market capitalisation of the company at the time was €34.6m.

The firm has received irrevocable undertakings from shareholders, including the company's largest shareholder, Leo Capital, to accept the offer. Other investors include Axxion and Discover Capital.

NorthEdge will invest £46.6m from NorthEdge Capital Fund II as part of the transaction. The fund closed on £300m in 2016 and invests £5-35m in companies with enterprise values of £10-100m. The firm also registered a third-generation vehicle in June 2019.

The company reported revenues of €43.4m in 2018, up from €24.6m in 2017, and adjusted EBITDA of €8.3m, up from €3.9m.

Previous funding
Catalis listed on the Frankfurt Stock Exchange in 2002.

In 2006, the company announced a £4.4m public takeover offer for Kuju, one of its three brands.

In 2014, Vespa Capital invested in the company and remains a shareholder today, according to the firm's website. Navigator Equity Solutions also sold its stake to Leo Capital in 2014.

The company de-listed from the Frankfurt Stock Exchange in June 2018.

Company
Founded in 1993, Catalis owns three brands: quality assurance service Testronic; games developer Kuju; and digital publisher Curve Digital. Headquartered in East Croydon, London, the company employs 450 people in the UK, the US and Poland.

People
Catalis – Dominic Wheatley (CEO).

Advisers
Equity – GCA Altium (corporate finance); Eversheds Sutherland (legal).
Company – Zeus Capital (corporate finance); Squire Patton Boggs (legal).