Private Equity Firms Summit Partners and TA Associates, both from Boston, have committed to buy majority of GMT Communication’s stake in a German gaming company, Bigpoint at $350 million which is the 2nd largest investment in an online gaming operation.
Bigpoint which is based in Hamburg, has a massive following of about 190 million registered users for its games, which include Battlestar Galactica Online. The CEO and Founder of the company, Heiko Hubertz, said in a statement that he is still in possession of his 30 percent stake after the deal.
Over a short period of time, Bigpoint has managed to expand geographically and has opened offices in San Francisco and Sao Paolo. The geographical expansion has also seen expansion of its gaming portfolio.
Bigpoint develops free-to-play online games that can be played anytime, anywhere which require no downloads or installation. The main revenue stream of the company is through the sale of virtual goods that players buy throughout the course of the game.
GMT said in a statement that the deal has delivered more than four times the money that had been put in during the $100 million takeover of Bigpoint back in 2008.
Natalie Tydeman, partner at GMT, said in a statement, “the investment in Bigpoint represents a great result for the company, for GMT and our investors”. She added, “As TMT specialists we were able to identify Bigpoint in 2007 and understand its tremendous potential.”