American mobile game company Jam City is going public on the New York Stock Exchange at a valuation of $1.2 billion.
The Harry Potter: Hogwarts Mystery and Panda Pop developer explained it will become a publicly traded company though a merger with DPCM Capital Inc., and said the deal will include the acquisition of Montreal-based mobile publisher Ludia.
Proceeds from the deal will be used to support future mergers, acquisitions, and strategic initiatives. The newly combined company will be known as Jam City Holdings and is expected to add around $115 million to its balance sheet.
The current Jam City management team, including co-founder, president, and COO Josh Yguado and chairman and CEO Chris DeWolfe, will continue to lead the new iteration of Jam City post-merger.
"We expect going public will provide us with a source of capital to accelerate our growth and advance our strategic priorities, while acquiring and teaming up with Ludia adds compelling new intellectual property and gaming genres to our catalog," commented DeWolfe.
The transaction is expected to close later this year and will require the approval from the stockholders of both Jam City and DPCM Capital.