Tencent has agreed to buy UK developer Sumo Group for £919 million ($1.27 billion). This will be paid in cash through Tencent’s Sixjoy Hong Kong Limited subsidiary.
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The $1.27 billion price is a 43% premium on what Sumo has been worth before the acquisition agreement.
Sumo owns 14 studios, which collectively employ over 1,200 people. These include Sumo Digital, The Chinese Room, Red Kite Games, Pipeworks, Atomhawk, and Timbre Games. Founded in Yorkshire back in 2003, Sumo has developed games for Sony, Microsoft and Sega and is perhaps best known for the installments in the Forza, Hitman, Sonic and LittleBigPlanet franchises.
Tencent has previously owned a minority stake in Sumo after acquiring 8.75% of the company in November 2019. Now, the Chinese tech is ready to go all the way.
Sumo’s shareholders are yet to approve the deal, but, it the words of Ian Livingstone, the company’s chair, “the board of Sumo firmly believes the business will benefit from Tencent’s broad videogaming ecosystem, proven industry expertise and its strategic resources.”
Sumo will continue to work on its own IP, as well as participate in co-development projects with strategic partners.
As for Tencent, in the first six months of 2021, it has invested in or acquired over 62 game companies. Germany’s Yager could be one of its upcoming purchases, if last week’s rumors are at least partially grounded.