Creator of mobile games Jam City will become the next company to enter the stock exchange through a merger with special purpose vehicle (SPAC)) after final agreement with DPCM Capital the merger was announced today.
"We believe Jam City is at the forefront of mobile gaming and its unique Games-as-a-Service model has proven to maintain player retention and increase monetization."
Emil Michael, President and CEO, DPCM Capital
Listing on the NYSE
Jam City and SLEEP will form a combined company with enterprise value $ 1.2 billion , and upon closing of the deal, the combined entity, Jam City Holdings, will float its Class A Common Stock on New York Stock Exchange (NYSE) under the stock ticker symbol "JAM".
"We expect that going public will provide us with a source of capital to accelerate our growth and pursue our strategic priorities, while the acquisition and collaboration with Ludia adds new and exciting genres of intellectual property and games to our catalog."
Chris DeWolfe, Jam City President and CEO
Immediately after the closing of the business transaction, Jam City will use 175 million USD proceeds from the acquisition of another mobile game development company, Ludia , from Fremantle Media, in order to connect the game developer from Montreal to further strengthen its own market position and global player network.
The new entity will be led by the Jam City management team - president and CEO Chris DeWolfe, co-founder, president and COO Josh Yguado and chief financial officer Jae Yu. The former director of BET, Viacom Media Networks and Microsoft will join the Board of Directors Denmark West .
"We believe games are the next generation of community engagement, and our long-term relationships in the global gaming ecosystem provide us with access to a rich set of unused, accumulating growth opportunities that we are ready to take advantage of."
Josh Yguado, Co-Founder, President and COO, Jam City
About 65% ordinary shares outstanding class A the combined entity will be owned by Jam City's current shareholders, while Jam City's strategic investor, Netmarble Corporation, will own a significant portion of the combined company's shares.
Visible future mergers and acquisitions
Netmarble and a group of institutional investors, as well as members of the company's combined management teams, have committed to private investment in public capital (PIPE) for value of $ 100 million to be closed in parallel with the connection.
The remaining approx 115 million the cash in the balance sheet of the combined economic entity will be used to accelerate growth by developing new games, improving proprietary technology, further analyzing and seizing opportunities for mergers and acquisitions as well as other strategic initiatives.
The combined company expects to generate $ 868 million in reservations and $ 112 million in corrected profit before interest, tax, depreciation (EBITDA) in 2022.
The merger, which has been approved by both Jam City and DPCM Capital boards of directors, will now require shareholder approval from both companies and is slated to close later this year, subject to other customary closing conditions and receipt of certain regulatory approvals.