We are pleased to announce that our portfolio company nDreams Limited (“nDreams”) has signed a contract with a leading global games publisher, to develop content for the rapidly expanding location-based entertainment (“LBE”) virtual reality (“VR”) market.
This latest contract win follows the announcement in November 2019 of a major VR contract award with a leading global company, and further underscores Mercia’s confidence in nDreams as it continues to consolidate its position at the forefront of global VR game development and publishing.
The global LBE VR market is poised to grow by $1.5billion during 2019-2023, progressing at a CAGR of nearly 36% during the forecast period, and predicted to make up c.11% of the VR industry.
Mercia currently holds a 36.4% fully diluted stake in nDreams.
Patrick O’Luanaigh, CEO and founder of nDreams, said: “We’re delighted with this new contract. This, along with the contracts we signed last year and winning the Game Critics Award at E3, demonstrates the confidence that the major players are showing in nDreams as one of the highest quality VR studios in the world. We’re also increasingly excited about the growth of the VR market; we’re on track to double last year’s revenue this financial year. Furthermore, with headsets like the Oculus Quest and Valve Index sold out for months ahead and multiple VR games now selling over 1million copies each, the VR market is growing extremely well.”
Julian Viggars, Chief Investment Officer of Mercia Asset Management PLC, said: “Alongside the growing home market, we are now seeing growth within the LBE VR market, with many new VR games and experiences appearing in arcades and shopping centres around the world. nDreams has once again demonstrated the leadership team’s ability to identify new opportunities, including joint solutions to drive growth, but importantly deliver both the requisite high-quality content and fully immersive consumer experience.”