Shanghai, June 29th, 2006. Virtuos, one of the world’s largest outsourced services provider in the games industry, announced today that it has closed a Series A stock financing round with Legend capital, the independent Venture Capital firm under Legend Holdings, owner of Lenovo group. New Access Capital is the exclusive financial advisor for this transaction.
According to independent market research firm Screendigest, “a quiet revolution is transforming the games industry as developers turn to outsourcing. The global market for games outsourcing will reach $1.1bn by the end of 2006 and is set to grow to $2.5bn by 2010 – representing 40% of total games development spend”. Focusing exclusively on providing outsourced services to international clients, Virtuos is uniquely positioned to address this opportunity.
In just 18 months since inception, Virtuos has become one of the key players in games outsourcing with over 100 fulltime in-house game specialists. Underlying Virtuos’ success are an international management team, proven processes, strong IT systems and focus. The company intends to expand the size of its teams as well as nurture a spirit of excellence to deliver the new service quality standards which the game industry requires to tackle the challenges of next generation game development. “While Virtuos has been profitable since inception, we are excited to partner with a group as strong as Legend. We plan to use the new funding to triple the size of our teams in the next 2 years. Virtuos will also invest further in training, processes, security and IT to create a level of service never seen before in our industry” said Gilles Langourieux, CEO, Virtuos.
The partnership with Legend Capital is a major step towards giving the company new means and methods to become the partner of choice for major game companies. “Legend Capital has made a series of successful investments in the outsourcing industry. This team has a unique vision for where the games industry is headed, so we are eager to share our experience base with them and help grow their business globally” said XIA Yang, Executive Director, Legend Capital.
Based in Shanghai, Virtuos was founded in December 04 by a group of veteran game developers led by former Head of Ubisoft China, the largest offshore game studios in the world, Gilles Langourieux. Virtuos was the first independent foreign game company in China; its clients now include over half of the top 10 game publishers as well as renowned developers. Virtuos is specialized in providing game production services in the fields of 3D Art, programming and QA to international clients who are looking to increase their production capacity, while keeping costs under control. For more information, please visit www.virtuosgames.com.
About Legend Capital
Legend Capital, a subsidiary of Legend Holdings Ltd., started in April, 2001 with a mission to become a top-notch and the most respected venture capital investment manager in China. Managing up to US$300 million across three funds, Legend Capital focuses on driving high-growth ventures with operations substantially based in China or on markets related to China. Legend Capital mainly invests in the IT industry, specifically, Internet applications & services, wireless applications & services, outsourcing, digital media and IC design/key components. Currently, it holds interest in about 40 portfolio companies. Successful investments include Joyo.com (acquired by Amazon.com in 2004) and outsourcing company SinoCom (HKEX: 299). For more information, please visit www.legendcapital.com.cn.