US games giant Electronic Arts (EA) has made its first investment in a Scottish software developer, having snapped up a 20% stake in Dundee-based Visual Sciences.
Headquartered in California, EA generates revenues of some #930m from the world-wide development, publishing and distribution of video, Internet and PC games.
Although this is its first such deal with a Scottish outfit, it regularly takes minority stakes in smaller businesses doing development work on the company's behalf.
Tom Stone, managing director of EA's UK studio in Chertsey, Surrey, said these initial investments were frequently followed about a year later by a full-blown takeover. Asked whether that might be the case with Visual Sciences, he replied: ''Watch this space.''
''Generally speaking, if we see a long-term future
between the developer and ourselves, then we will try to arrange to take a minority stake,'' Stone said. ''It generally makes sharing technology a lot easier.''
Having sold the 20% holding, which was purchased for an undisclosed sum,
Visual Sciences will now undertake work strictly on behalf of EA. The business, which employs 50 people, will concentrate on the production of racing games.
Set up seven years ago by Russell Kay, formerly of DMA Design, Visual Sciences began its first piece of work for EA in January 1999. That project led to the creation of F1 2000 for PlayStation, a game that shot to the top of the European charts when released in March of this
year.
Kay, who owns the remaining 80% of Visual Sciences, said the deal would not lead immediately to the creation of new jobs. But
now with the stability of forward planning - a luxury that independent developers do not have - steady growth is on the cards.
''We're looking to consolidate for the present, but we do have long-range plans,'' Kay said. ''We have got a full roster of products for this year and next.''
Although none of these can yet be disclosed publicly, both Kay and Stone said the focus would be upon racing.
''But I wouldn't say it's
just motor racing we'll be doing,'' Kay said. ''We may have other forms of racing up our sleeves.''
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