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Dublin-listed Draper Esprit to receive £39m from Peak Games sale


(stock photo)

(stock photo)

Alex Dodd

(stock photo)

Dublin-listed venture capital firm Draper Esprit will receive approximately £39m (€43m) after game developer Zynga purchased a company that it had invested in.

Zynga has acquired Peak Games for a total price of around $1.85bn (€1.64bn), comprising of approximately equal proportions of cash and Zynga stock.

Draper Esprit expects to receive the £39m in cash “in the coming days.” The remaining consideration of shares in Zynga are to be held subject to a further six months lock-up.

On the basis of the current Zynga share price the sale indicates a fair value holding for Draper Esprit of approximately £88m, according to a statement from the company.

Martin Davis, Draper Esprit CEO, said: "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.

We look forward to watching Peak Games' ongoing development as part of Zynga and have no doubt that the business will continue to flourish.”

Earlier this year the company said it had made a provision for a £99m (€111m) adjustment across its portfolio due to the impact of the coronavirus pandemic on the value of businesses.

This modification is on the pre-coronavirus estimates from the company and is equivalent to a 21pc adjustment across 53pc of its portfolio, according to an update from the group in May.

Before the onset of Covid-19 the company had targeted 20pc portfolio growth.

Online Editors