British metaverse company Improbable has sold off its defence and national security arm to an investment group led by multi-family office NOIA Capital for an undisclosed sum.
NOIA Capital will acquire Improbable Defense’s UK Ministry of Defence contracts in addition to around 70 of its engineers and modellers.
Founded in 2012, Improbable creates virtual worlds for gaming and entertainment, along with simulations for training purposes.
It comes after Improbable scaled back staff in its defence division in December last year in a bid to cut costs.
At the time, Improbable said its defence unit was the only part of the business that is not profitable. Improbable’s losses for 2021 – the most recently available figures on Companies House – totalled £149m.
Reports first emerged in March that Improbable was looking to sell its defence arm.
“With our new partners at NOIA and Kingsway we are excited to continue to provide these technologies to partners at the UK government and to export this British-made product to our allies across the globe,” said Nick Blair, who will become chairman of Improbable Defense.
Further investors in the group include Kingsway.
Last year the company raised $250m (£201m) over two rounds in April and October, at a valuation in excess of $3bn (£2.4bn). It has raised more than $700m in funding since.
Joe Robinson, CEO of Improbable Defence said: “Whilst we continue to support the vital mission of national security, we look forward to working together to expand the business into new verticals and new geographies.”
The sale of its defence division is still subject to regulatory confirmation, with a decision expected in three to six months.