Foundation 9 Gets 'Significant' Funding Investment
Major independent video game developer Foundation 9 Entertainment (Death Jr.), which includes divisions including Backbone, Digital Eclipse, The Collective, and Pipeworks, has announced that it has received "a significant capital infusion" from technology-focused investment firm Francisco Partners.
According to the company, Francisco Partners will fund Foundation 9 with up to $150 million over the next few years, with access to further resources as necessary for Foundation 9’s organic growth, IP development, and future acquisitions. UBS Securities served as advisor to Foundation 9 in the transaction.
Foundation 9 Entertainment was formed just over a year ago by the merger of Backbone Entertainment and The Collective. The company has shipped more than 300 titles since its inception, including the original title Death, Jr. Foundation 9’s games have generated more than $1 billion in consumer sales, with recent successes including the multi-million seller Star Wars Episode III: Revenge of the Sith.
The company owns a significant minority stake in Hollywood production and management company, Circle of Confusion, whose clients include the Wachowskis, creators of The Matrix. Circle of Confusion recently announced a production deal with CBS.
Brian Ruder, a principal with Francisco Partners, commented of the deal: “Francisco frequently makes follow-on investments behind our platform companies. Relative to other businesses we have evaluated in the videogame sector, Foundation 9 enjoys a low volatility, solid growth, and consistent profitability, making it an excellent platform for further consolidation, and continued deployment of capital.”
“We've had great success – and it’s been a fantastic ride – pursuing, on our own, both a profitable work-for-hire business, as well as layering on new creative opportunities with original IP development,” said Jon Goldman, Chairman and Chief Executive Officer of Foundation 9 Entertainment. “Francisco Partners’ deep resources will enable us to continue creating stronger opportunities for our employees and publishing partners, as well as our partners in the film/TV and consumer products worlds.”