Manchester-based technology investment bank GP Bullhound advised flying games firm InnoGames on a €90 million deal.

Swedish entertainment firm Modern Times Group bought a 35 per cent stake in German company InnoGames with the option of raising it to 51 per cent at the same share price before September next year.

The transaction values InnoGames, which surpassed €100m in revenues in 2015 and has more than 150 million registered players worldwide, at €260m.

The company, founded in 2007, has produced several successful titles including Forge of Empires, Elvenar, Grepolis, Tribal Wars and The West, and successfully completed the transition from browser to mobile.

"We have scored major success with our live games and are now focusing on the development of new mobile first titles while maintaining our high quality operations of all live games,” said InnoGames co-founder and CEO Hendrik Klindworth.

“MTG's international presence, understanding of storytelling entertainment, and commitment to IP development and building engaged user communities will bring our games to even larger audiences around the world.

“MTG's culture of empowering entrepreneurial spirit is exactly what we were looking for as we move into the next chapter of our story.

“The team could not be more excited about further boosting our future potential and performance."

MTG owns ESL and DreamHack and is a major player in the European eSports scene.

Julian Riedlbauer, partner at GP Bullhound, commented: "It has been a pleasure working with the InnoGames founders again after helping them find Eight Roads Ventures as an investment partner during the company's early years.

“As the most highly valued software and games transaction in Germany thus far in 2016, we are proud to have advised on such a meaningful deal."

InnoGames has more than 400 employees from 30 nations.

Below: GP Bullhound founder and managing partner Hugh Campbell on the Manchester tech sector