Sumo Digital is a creator and developer of interactive video games, partnering with global publishers across all platforms including Playstation 4 and Xbox One.
The Challenge
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63% sales growth to £20m
New client wins account for 35% of revenues
Introduced new Chairman and Non-Executive Director
Sold to Perwyn in Sept 2016 for £50m
The solution
We helped develop and implement a strategy designed to position Sumo as an integral partner to a global blue-chip client base, shifting the business away from a low value outsourcing model.
We strengthened the company’s senior management team with an experienced Chairman and Non-Executive Director, enabling Sumo to tap into new networks and expand its customer base.
We supported significant investment in the business’ own IPR, developing and launching beta platforms that demonstrated the business’ ability to penetrate the higher-margin gaming market across consoles, mobiles and PCs.
Improving operational efficiency also played a key role in the strategy through the introduction of focused monitoring of performance metrics and better appraisal of new projects. We also worked with the executive team to open a second UK studio in Nottingham, as well as investing in up-skilling the firm’s Indian operation, to increase capacity and margins.
The Outcome
Sales growth of more than 63 per cent, passing the £20m mark for the first time – in FY16, new clients won accounted for 35 per cent of revenues.
The proportions of recurring and IPR-related revenues were grown, considerably improving the implied valuation of the business.
Completion of a secondary buyout to Perwyn Private Equity in September 2016 at an Enterprise Valuation of over £50m, representing a significant money multiple on initial investment. The business floated on AIM in January 2018.
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