RuneScape maker Jagex to be acquired for over $1 billion, with CVC Capital Partners named as buyer

RuneScape developer Jagex might be sold to Luxembourg-based private equity firm CVC Capital Partners. The studio’s current owner Carlyle Group has been looking for potential buyers for several months now.

• As reported by SkyNews, CVC Capital Partners is now in “advanced talks” with Carlyle Group to acquire Jagex for about £900 million ($1.13 billion).
• The agreement could be signed within days. According to the publication, CVC currently “explores new ways to invest in intellectual property assets with large international fan-bases.”
• Carlyle Group first announced its plans to sell Jagex in September 2023, valuing the RuneScape maker at £1 billion ($1.26 billion).
• It was reported that potential buyers were likely to include private equity firms, which could use the studio as an asset to buy a number of smaller game developers.

Founded in 1999, Jagex is a UK developer and publisher based in Cambridge. It is best known for its free-to-play MMORPG RuneScape, which has generated over $1 billion in lifetime revenue and reached over 300 million players since 2001.

Over its 24-year history, the studio has gone through several owners, including Macarthur Fortune Holding and Chinese investment firm Hongtou. Carlyle Group acquired Jagex in 2021 for more than $530 million, but the exact financial terms of the deal remained undisclosed.

As a publisher, Jagex distributed games such as MMORTS War of Legends, sandbox title Ace of Spades, and looter shooter Space Punks. It also has two subsidiaries, co-development studio Pipeworks Studios and SCUM creator Gamepires.

In 2021, the studio reported a record £125 million ($157 million) in revenue. Last year, its annual earnings before interest, tax, depreciation and amortization (EBITDA) were estimated at £60 million and were expected to increase by over 10% in 2024.