Mercia's nDreams wins multi-million contract with VR company

National investment group Mercia Technologies announced on Thursday that investee company nDreams has won a multi-million dollar contract with an unnamed virtual reality technology company.

The AIM-traded firm said the new contract for nDreams, which it described as a “leading” European developer and publisher focused on VR gaming and experience content, represented its most significant contract win to date.

Mercia, which holds a 45.6% direct equity stake in nDreams, initially financed nDreams' pivot from developing content for PlayStation Home Virtual Worlds to successfully becoming a specialist in virtual reality content provision.

Following early support from Mercia's managed funds, Mercia made its first direct investment into nDreams in December 2014.

Since then, nDreams had been working with some of the leading global names in the VR industry including Sony PlayStation, Oculus, HTC, Google and Microsoft.

“This contract is not only highly significant for nDreams, as it reinforces the substantial potential value of this exciting VR business, but it is also a reflection of the wider inherent value held in the Mercia direct investment portfolio,” said Mercia chief executive officer Dr Mark Payton.

“Today's announcement, which follows the recent Oxford Genetics announcement, is the second multi-million pound contract which Mercia's two largest direct investments by value have recently secured and taken together, demonstrate the tangible commercial progress which the portfolio is making.

“We expect to announce further positive news from our direct investment portfolio in due course.”