Mercia Asset Management bids adieu to nDreams

• Mercia is an asset manager with around £1.4bn of assets
• The exit provided a 2.7x return on invested capital and an 18.4% IRR
• Aonic, a video gaming investment company, is the buyer 

Mercia Asset Management has sold nDreams, a virtual reality studio, to Aonic for an enterprise value of £90.3 million ($112 million; €103 million).

nDreams is based in Farnborough, Hampshire.

Mercia held a 33.2 percent direct stake in nDreams, resulting in total consideration of £30.2 million, split in £26.4 million in cash proceeds and £3.8 million re-invested into Aonic, according to a release.

This exit results in a 2.7x return on invested capital and an 18.4 percent IRR, and the exit price represents a £4.4 million (17.5 percent) increase on Mercia’s carrying value for nDreams as at 31 March.

Mercia’s initial investment of about £300,000 in nDreams was made in March 2014 through its managed funds, with the group first investing from its own balance sheet in December 2014, the release said.

“This trade sale represents another profitable outcome for Mercia, realising a significant return which is above our current holding value, predominantly in cash,” said Mark Payton, CEO of Mercia. “This latest successful exit further adds to our strong debt free cash position, which now stands at around £60 million.”

Aonic made an initial £20.0 million investment into nDreams in March 2022.

Mercia is a UK-based asset manager with around £1.4 billion of assets under management.

Aonic is a diversified video gaming investment company based in Stockholm, Sweden.