Jam City reveals the sale of Ludia

Jam City has decided to divest itself of Ludia, its game development studio located in Montreal.

An agreement has been finalized between Jam City and a group of Canadian investors, including some of Ludia's senior executives, for the sale of the studio and its game portfolio.

Although Jam City wasn't initially looking to sell, the offer for Ludia was too persuasive to ignore.

The sale isn't anticipated to have a major effect on Jam City's broader operations or its forthcoming game releases.

Key investors involved in this transaction are Fonds de solidarité FTQ, Investissement Québec, BDC Capital Growth Equity Partners, Export Development Canada, and Groupe W, with National Bank also supporting the deal. Dominic Bécotte, Ludia's former CFO, took on a consulting role during the buyout.

Following this sale, Ludia will function independently and has appointed Jimmy Gendron as its CEO, leading a team of around 130 employees.

A limited number of Ludia employees will continue their work with Jam City to support ongoing game projects.

Additionally, Ludia's founder Alexandre Thabet is returning to the company as a shareholder and has taken on the role of chairman of the board.

Josh Yguado, Jam City's CEO and co-founder, expressed admiration for Ludia's team, praising their ingenuity and contributions to mid-core and AR gaming. "They are an exceptionally capable and creative group, and we have full confidence in Ludia's bright future," he stated.

Echoing this sentiment, Ludia's CEO Jimmy Gendron conveyed appreciation for Jam City's partnership, stating, "We are deeply grateful to our partners and teammates at Jam City for their support and collaboration." He highlighted the new phase of independence as a thrilling opportunity for growth, emphasizing the role of Ludia's talented team and their strong financial support as driving forces for their visionary goals in gaming.

It is noteworthy that Jam City bought Ludia for $165 million in September 2021.