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In a deal valued at £90.3 million ($110 million), Stockholm-based Aonic AB purchased nDreams, a top VR company in the UK, in a ground-breaking move for the virtual reality (VR) game sector. Mercia Asset Management, an investor in nDreams, is making a major exit with this deal.
Mercia Asset Management, an innovative investment business, showed early awareness of the potential expansion of virtual reality gaming when it invested £0.3 million in nDreams in March 2014. This calculated action came before Facebook’s crucial acquisition of Oculus VR, a historic agreement for the sector. With a total return of £30.2 million, Mercia’s proactive support for nDreams has finally resulted in a profitable exit, marking a 2.7x return on investment and an amazing 18.4% internal rate of return (IRR).
Since its founding in 2006 by Patrick O’Luanaigh, Dreams has grown significantly, employing 195 developers across four studios and growing its workforce from about 100 in the beginning of 2021 to 250. Leading the way in VR game creation, the business has released popular titles including “Ghostbusters: Rise of the Ghost Lord” in association with Meta and Sony Pictures Virtual Reality, as well as the #1-charting “Powerwash Simulator VR” for Meta Quest.
In March 2022, Aonic, a diverse video game company with a significant presence in the virtual reality (VR) and augmented reality (AR) sectors, invested $35 million in nDreams. This investment was crucial in helping nDreams execute its strategic plans, which included the purchase of Brighton-based Near Light Limited, a company that develops VR and AR games, and organic investments in the creation of new games.
Reiterating his optimism in VR gaming, Julian Viggars, CIO of Mercia Asset Management and board member of nDreams, said, “We look forward to nDreams continuing on its exciting VR and AR journey within a larger gaming group.” Mercia is still in a good position to gain from nDreams’ ongoing expansion as a member of Aonic, having made a partial reinvestment.
Dr. Mark Payton, CEO of Mercia Asset Management PLC, highlighted the profitability of the exit, stating, “This trade sale represents another profitable outcome for Mercia, realizing a significant return which is above our current holding value, predominantly in cash.”
As nDreams enters a new chapter under Aonic’s umbrella, the VR gaming landscape anticipates further innovation and growth.