The PE firm said it acquired the stake through its Advent Partners 2 Fund, alongside founders and management as well as local venture capital firm Carthona Capital, an early investor in Zero Latency.
Advent Partners 2 Fund is a $300-million, mid-market expansion and buyout vehicle. Its portfolio includes Silk Laser Clinics, which was listed on the Australian stock market in 2020; Compass Education, a student software group; Mandoe, a digital signage software; and Medtech, a management software firm.
Zero Latency was founded in 2013 after an initial crowdfunding round. It is now widely regarded as one of the global pioneers of “warehouse scale” virtual reality. It has over 50 sites across the Americas, Europe, Middle East, and Asia-Pacific, including seven company-owned sites in Australia and other licensed sites offshore.
The Melbourne-based gaming firm said it creates immersive VR experiences for up to eight players by combining hardware and player wearables with its technology, proprietary software, and exclusive gaming content.
Advent Partners said Zero Latency is now at an inflection point and is looking to accelerate its network expansion plans as consumers move up the experience curve, increasing VR’s mass-market appeal.
Data cited by the PE firm showed that the location-based VR market is attractive at $3.6 billion globally, with the market expected to grow at over 30% annually from 2018 to 2026.
“It is the ideal time to get into the location-based VR sector, with consumers increasingly seeking new experiences, creating a large opportunity for Zero Latency VR,” said Symon Vegter, who, along with Mark Jago, oversaw the transaction for Advent Partners.
Zero Latency co-founders Tim Ruse, Scott Vandonkelaar, and Kyel Smith will continue to lead the business in their roles as CEO, CTO, and COO respectively.