Tencent to acquire UK game developer Sumo for £ 919million
The acquisition of the BAFTA-winning gaming house marks Tencent’s continued global expansion.
Chinese tech giant Tencent is acquiring UK games company Sumo for around £ 919million, the company said today (July 19).
Sheffield-based Sumo, a video game developer who primarily makes racing and snooker games, recently developed Sackboy: A Big Adventure for Sony and Crackdown 3 for Microsoft.
Tencent, one of the world’s largest games and social media companies, will pay £ 5.13 per share for Sumo, reports Reuters. News of the deal saw Sumo shares soar 42% in London to an all-time high.
The move marks Tencent’s continued global expansion and adds to its line of popular games such as Fortnite, League of Legends and the mobile version of Call of Duty.
Tencent already owns an 8.75% stake in Sumo and the acquisition will go through Tencent’s subsidiary, Sixjoy Hong Kong.
“The opportunity to work with Tencent is one that we just couldn’t miss. This would bring another dimension to Sumo, providing opportunities for us to truly make our mark on this incredible industry, in a way that was previously beyond reach, ”Sumo CEO and Co-Founder Carl Cavers said in a statement.
Cavers said he and the other two Sumo founders, Paul Porter and Darren Mills, are expected to continue playing their roles in the business after the acquisition.
“Along with accelerating intellectual property work, Tencent has demonstrated its commitment to supporting the work of our customers and has stated its intention to ensure that we have the necessary investment to continue to focus on working with our core strategic partners on turnkey and co-development projects ”, he declared.
Sumo’s partners and customers include Microsoft’s Xbox, Amazon Game Studios, Apple, Google and the BBC. It is listed on the AIM London market in 2017 at £ 1 per share.
In a similar deal earlier this year, US-based Electronic Arts bought game developer Codemasters for $ 1.2 billion. Another England-based company, Codemasters was responsible for the development of the popular F1 game series.