Jam City, the developer behind mobile game Harry Potter: Hogwarts Mystery and Cookie Jam, has ended its plan to go public through a special purpose acquisition company that would have valued the combined company at $1.2 billion.
According to a joint statement from special purpose acquisition company DPCM Capital Inc and Jam City, they terminated the deal due to current market conditions.
As part of the transaction, Jam City had planned to acquire Montreal-based mobile game publisher Ludia for $175 million, in order to “bring together two highly creative leaders in mobile gaming and further strengthen Jam City’s market position and global player network.”
When Jam City first announced the SPAC deal in May, Chris DeWolfe, Chairman and Chief Executive Officer of Jam City had said “We expect going public will provide us with a source of capital to accelerate our growth and advance our strategic priorities, while acquiring and teaming up with Ludia adds compelling new intellectual property and gaming genres to our catalog. Together, we believe these transactions will advance our vision to create premium, social mobile games that are an enduring part of our players’ lives.”