March 06, 2018
Northern Pacific Group, DGB Investments and St. Cloud Capital Acquire Interactive Technology Company, Pipeworks Studios
Minneapolis, MN: Minnesota-based private equity firm Northern Pacific Group (NPG), DGB Investments and St. Cloud Capital have backed the award-winning management team at Pipeworks, Inc. to effect a carve-out from the Italian parent, Digital Bros.
Founded in 1999 and headquartered in Eugene, OR, Pipeworks Studios employs more than 80 staff and partners with top-tier gaming publishers and Fortune 1000 companies to develop world-class games, innovative interactive technology, original IP, advanced virtual reality (VR) / augmented reality (AR), and artificial intelligence-driven simulations.
With a hands-on investment style and a team of experienced investment partners and operators, NPG is uniquely poised to help Pipeworks Studios transition into an even more dominant interactive technology specialist through industrial and commercial industry expansion.
“Northern Pacific Group is thrilled to have Pipeworks as the capstone deal in our Fund I,” said NPG Managing Partner, Scott Honour. “Its reputation for innovation and solving the toughest problems makes the company uniquely positioned to support a variety of industries seeking game-changing solutions to interactive technology. We’re excited to support this proven management team in such a high-growth and dynamic industry.”
The investor group has backed the existing management team, led by Lindsay Gupton (chief executive officer), to complete the purchase from Digital Bros, an Italian game publisher that acquired Pipeworks Studios in 2014.
John Schappert, CEO of Shiver Entertainment and former COO of Zynga and Electronic Arts, will join the board of directors and mentor Pipeworks Studios management in achieving next level performance by leveraging his 20 plus years of industry expertise.
Doug Bergeron, founder of DGB Investments, a diversified holding company of high growth technology investments and new Pipeworks board member, is keen on the company’s leadership position within such a progressive industry stating, “We are very enthusiastic about the team’s opportunities to capitalize on a burgeoning landscape of interactive solutions for difficult business and military problems.”
Gupton welcomes the infusion of veteran partners to help Pipeworks Studios navigate innovative growth opportunities. “We couldn’t be happier with the investment team backing Pipeworks,” said Lindsay. “This is an exceptional leadership group that will empower us to reach the next level in our mission to be the most innovative game development studios in the world.
We’re thankful to NPG, DGB and St. Cloud Capital for the opportunity, and to Digital Bros for their continuing support, and look forward to a great future together.”
Kacy Rozelle, co-founder of St. Cloud Capital adds: “We are extremely pleased to facilitate Pipeworks’ next chapter of growth in partnership with management, the investor group and Digital Bros, who has been a fantastic advocate of Lindsay and his team.”
ABOUT NORTHERN PACIFIC GROUP
Northern Pacific Group is a Wayzata, Minnesota-based private equity firm investing in rapidly growing businesses that serve enterprise customers. Northern Pacific Group seeks to drive collaborative achievement at portfolio companies in partnership with ownership groups and management teams. For more information, please visit www.northernpacificgroup.com.
ABOUT DGB INVESTMENTS
DGB Investments is a diversified holding company of high growth technology investments, founded and managed by Doug Bergeron, the former Chairman and CEO of VeriFone, Inc. https://www.dgbinvestment.com.
ABOUT ST. CLOUD CAPITAL
St. Cloud Capital is a Los Angeles-based private investment firm founded in 2001 to provide growth capital to the lower middle market throughout the United States. St. Cloud has made 62 portfolio investments in companies across a wide range of industries and in every layer of the capital structure, including senior secured debt, subordinated debt, and preferred and common equity. For more information, visit https://www.stcloudcapital.com.
ABOUT PIPEWORKS, INC.
Pipeworks Studios is an independent studio specializing in advanced consumer and commercial games with innovative, “real world” scenarios for a diverse community of corporate partners. With high-tech projects ranging from Terraria to military simulations, Pipeworks expertly produces amazing game experiences and applications across a variety of industries, technologies and platforms.