TA Associates today announced that it has completed a significant minority investment in Forgame Tech Co., Ltd, a developer and publisher of online, browser-based games. Qiming Venture Partners and Ignition Capital Partners partnered with TA Associates on the investment.
“TA Associates, Qiming Venture Partners and Ignition Capital Partners are pleased to complete this investment in Forgame, the leader in the vibrant Chinese browser-based gaming industry,” said Jason Tan, Director – China, TA Associates Asia Pacific. “With a diversified revenue stream, proven content development capabilities and a comprehensive game distribution network, Forgame has achieved significant growth since its founding. Given its robust product pipeline across multiple game categories, we anticipate continued strong performance by Forgame.”
Founded in 2008, Forgame is one of the largest web game companies in China. Forgame has developed 28 cloud-based multiplayer online games, including Ming Dynasty, Soul Guardians, Soul Guardians 2, Fantasy Ascension, The Ninth Heaven and Legend of Chaos. Under the “freemium” model, players can play all of Forgame’s games for free, and purchase in-game virtual goods and privileges to enhance their gaming experience. As of June 2012, Forgame’s publishing platform had more than 110 million registered users. The group is headquartered in Guangzhou, China (www.forgame.com).
“We continue to see a favorable shift to browser-based, freemium games, with revenue from virtual goods sales expected to grow significantly,” said Hans Tung, Managing Partner, Qiming Venture Partners, who will also join Forgame’s Board of Directors. “As the free-to-play model allows a user to play without purchasing an expensive game console, it is particularly attractive in regions with historically limited console markets such as China, South Korea and continental Europe. We anticipate significant ongoing market opportunities for Forgame in these regions.”
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968 TA has invested in over 400 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, MA; London, UK; Menlo Park, CA; and Mumbai, India (www.ta.com).
Qiming Venture Partners is an early to growth stage venture capital firm with offices in Shanghai, Beijing and Hong Kong. Qiming invests in young, fast-growing companies across China in the media and Internet, IT, consumer and retail, healthcare, and clean technology sectors. Founded in 2006, the firm manages four funds with over $1 billion in assets (www.qimingventures.com).
Ignition Capital Partners seeks to build and expand a select group of highly profitable, long-term businesses that occupy significant positions in their industries. The firm specializes in growth equity and specialized buyout investments. Ignition Capital Partners is based in Seattle (www.igncap.com).
O’Melveny & Myers provided legal counsel to TA Associates, Qiming Venture Partners and Ignition Capital Partners. Jingtian Gongcheng provided legal services to Forgame.
