British publisher Kwalee has acquired a 3.58 percent stake in Devolver Digital.
The company said the equity investment is part of a “broader strategy for balanced growth” and described Devolver as a “fantastic brand” with “category defining games.”
“The investment in Devolver fits with Kwalee’s broader growth strategy to expand beyond its heritage in hyper casual mobile gaming to achieve more balanced growth. The minority investment in Devolver increases Kwalee’s exposure to the PC/console segment, one of its four target verticals,” reads a press release.
“Kwalee’s own entry into the PC/console market is relatively new, with its latest launch Robobeat rated ‘overwhelmingly positive’ on Steam, receiving 97 percent positive reviews. Kwalee has over ten promising PC/console games in the pipeline including The Precinct, The Spirit of the Samurai and In Sink.”
Kwalee was able to make the investment after Devolver undertook an equity placing of £7.9 million ($10 million) through the issue of 23.9 million new shares of common stock. Those shares represented 5.4 percent of the issued and outstanding share capital of Devolver and were issued in a bid to “further strengthen the balance sheet.”
Devolver has been busy over the past 12 months. The Cult of the Lamb and Inscryption publisher lost CEO Douglas Morin in February but said his departure would drive “long-term growth and development.” Morin was replaced by executive chairman and co-founder Harry Miller.
Prior to that, the company spent $40 million to acquire Astroneer developer System Era to expand its roster of internal studios. It has also cut jobs, laying off 28 employees at Artificer in February.