CVC Capital Partners and Haveli Investments have formally confirmed their acquisition of Jagex, the renowned developer behind RuneScape, from Carlyle Group. Although the specifics of the deal remain undisclosed, earlier reports indicated that CVC was prepared to invest approximately £900 million in this transaction.
Luxembourg-based CVC Capital Partners, a major player in the realm of private equity, boasts a portfolio heavily skewed towards investments in sports entities and leagues. On the other hand, Haveli Investments, headquartered in Austin, Texas, has carved out a niche as a seasoned investor in the gaming industry, having previously supported notable ventures such as Behaviour Interactive, Omeda Studios, and Candivore.
Jagex, with a global workforce exceeding 700 employees, is synonymous with its flagship RuneScape franchise, which has amassed a staggering revenue of over $1.5 billion since its inception 23 years ago.
Highlighting its recent success, the company disclosed in a press release accompanying the acquisition announcement that both RuneScape and Old School RuneScape witnessed record-high subscriber numbers in 2023.
Notably, Jagex is currently immersed in the development and impending launch of Scum for PC and consoles, a project inherited through its acquisition of Gamepires in 2022. Anticipation surrounds the forthcoming release of Scum, slated for later this year.
This acquisition marks another chapter in Jagex’s ownership journey over the past decade. Previously under the ownership of a consortium of Chinese investors within Zhongji Holding, later transitioning to US-based Macarthur Fortune Holding in 2020 for a sum of $530 million, the company eventually fell under the stewardship of Carlyle Group in the subsequent year.
However, reports surfaced in September suggesting Carlyle’s intent to divest its stake in the RuneScape developer a mere two years after its acquisition.
Expressing his satisfaction with the deal, CEO Phil Mansell extended a warm welcome to CVC Capital Partners and Haveli Investments, portraying them as strategic partners poised to propel Jagex forward.
He emphasized the collective vision to expand the portfolio of “forever games,” bolster community engagement, foster innovation to enhance player experiences and cultivate new immersive gaming experiences.
Acknowledging the pivotal role played by Carlyle in Jagex’s trajectory thus far, Mansell expressed gratitude for their unwavering support, underscoring its instrumental role in positioning Jagex for future success.
Goldman Sachs spearheaded advisory duties for CVC Fund VIII and Haveli, while Carlyle received financial counsel from Morgan Stanley & Arena throughout the acquisition process.
