Mercia Technologies PLC (AIM: Merc, “Mercia”), a Midlands-based investment group building, funding and commercialising technology businesses in the UK, has completed the second tranche of a total £1.5m investment into Edge Case Games (“Edge Case”), the developer and publisher of the PC-based tactical space combat game, Fractured Space. At the same time, Edge Case has reached a strategic partnership with the major Chinese software publishing house and top developer, Seasun Games Corporation Limited (“Seasun Games”). Seasun Games has also agreed to invest £1.0m alongside Mercia Technologies’ capital in Edge Case.
Edge Case launched Fractured Space through Steam’s gaming marketplace “Early Access” platform in Alpha form in November 2014. The launch generated 400,000 users in the first five months, and the team is now working towards a full commercial launch in early 2016 on other platforms.
Seasun Games is a leading Chinese games publisher whose parent, Kingsoft Corporation Limited (“Kingsoft”), is listed on the Hong Kong Stock Exchange (HKEX: 03888) with a market value of approximately HKD 24bn. Seasun Games has introduced titles such as Relics of Gods and the popular MMORPG series JX that has grossed more than $500m and has achieved a monthly active user count of 4.5m.
China is now the largest games market in the world, overtaking the United States last year, with sales of mobile games in China expected to reach $5.5bn this year, up from $3.3bn in 2014, according to a report by Niko Partners published in September 2015. The market size is expected to increase to $11.1bn by 2019.
Edge Case is an exemplar of the Mercia model – a direct investment (“emerging star”) which has evolved from Mercia’s third party funds under management, leading to this exciting partnership with Seasun Games. Mercia has worked closely with management, supporting and accelerating development from a team of two at initial investment to a team of over 30 today. This direct investment of £1.5m alongside £1.0m from Seasun Games will help scale the business globally.
Mark Payton, CEO of Mercia Technologies, said:
“We are delighted to continue to support Edge Case Games as it moves across the group to join some notable direct holdings of ours within the Mercia Technologies digital portfolio. The company benefits from a highly experienced and dedicated team, strong management and successful initial commercial traction.
“With a key strategic partnership now in place with Seasun Games, we are confident that Edge Case Games will gain a strong foothold in the emerging and expanding markets of Asia.”
James Brooksby, CEO and Co-Founder of Edge Case Games, said:
“This latest injection of funding from Mercia and our strategic partnership with Seasun Games means that Edge Case is ideally placed to take advantage of the explosive global growth in free to play games, across multiple platforms.
“We look forward to continuing to benefit from the expertise and experience of the Mercia team, as we develop our business and expand into new global markets.”