The firm, which has been developing, publishing and retailing games for 25 years, creates and sells a range of titles through major international distributors including Sony, Microsoft, Apple, Google and Steam.
Team 17, led by CEO and founder Debbie Bestwick MBE and finance director Paul Bray, also works with third party developers to help bring their products to market.
The investment, facilitated by mid-market private equity firm LDC, will enable Team 17 to expand its existing games portfolio through a number of planned releases, develop its publication model, and support its growth overseas.
It will also build upon the success the firm has seen in recent years, including revenues growing by more than 50% to £10.3m in 2015.
As part of the transaction, Team 17 has also acquired Moudy Toof Studios, the developer behind prison break game The Escapists, further diversifying the Wakefield company’s portfolio.
Ms Bestwick said: “In LDC we have a partner that not only shares our vision, but also understands the importance of people to our business model. People are the foundation of the gaming industry and as both a developer and a publisher, it’s incredibly important that we continue to nurture new talent and fully support our partners, helping to grow sustainable studios and create successful IP.
“With LDC’s investment and support, we’re now in an even stronger position to continue our growth strategy.
“The team’s experience of supporting businesses that work overseas means they’re well-placed to help us continue bringing the best games to the global market, and with a number of launches in the pipeline we’re set for a busy few months.
“This is an exciting time for Team17, and I’m looking forward to working together with LDC as we take our business to the next level.”
The transaction was led by John Garner, Dale Alderson and Dan Smith at LDC in Leeds. John and Dale will join the board as non-executive directors.
John Garner, director and head of LDC in Yorkshire & the North East, added: “Team17 exemplifies the best of the UK gaming industry, and its unique business model and continued focus on innovative product development has seen Debbie and her management team build an extremely successful company.
“We are delighted to support the business during its next stage of growth and development.”
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