Draper Esprit to cash in from Zynga purchase of Peak Games
By Josh White
Date: Friday 03 Jul 2020
(Sharecast News) - Technology-focussed venture capital company Draper Esprit said on Friday that interactive entertainment giant Zynga has acquired Peak Games, the Istanbul-based creator of Toon Blast and Toy Blast, for a total price of about $1.85bn.
The AIM-traded firm said that it comprised about equal proportions of cash and Zynga common stock.
Draper Esprit said it expected to receive the cash portion of the transaction of around £39m, net of escrow balances, in the coming days.
The remaining consideration of shares in Zynga were to be held, subject to a further six month lock-up.
On the basis of the current Zynga share price, the sale indicated a fair value holding for Draper Esprit of around £88m, representing a fair value uplift of £26m recognised in the year ended 31 March 2020, and a further £20m post year-end.
The sale was the first realisation of the financial year ending 31 March 2021, and followed total exits realised in the 12 months to 31 March 2020 of £40m, the board noted.
"This transaction represents a significant return on our original investment and builds on the strong momentum we have already generated since starting the new financial year," said chief executive officer Martin Davis.
"We look forward to watching Peak Games' ongoing development as part of Zynga Inc and have no doubt that the business will continue to flourish.
"Our partnership with Earlybird continues to generate significant returns, enabling us to reinvest in the best European technology companies on behalf of our shareholders, and it is important to note that, following this sale, we still have a remaining portfolio of high growth technology companies such as UiPath and Smava as part of our original January 2019 investment in the EB IV fund."
At 1430 BST, shares in Draper Esprit were up 3.7% at 477p.
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