Tencent Holdings has announced the acquisition of Sumo Group for $1.27 billion in cash making it the largest video game acquisition in UK history, no other details were revealed. Tencent already has an 8.75% stake in the company. Sumo Group is comprised of Sumo Digital, The Chinese Room, Pipeworks Studios, Timbre Games, Atomhawk and more. The company has also worked on Sackboy: A Big Adventure with Sony Interactive Entertainment and Team Sonic Racing with Sega.
Here’s what James Mitchell, chief strategy officer at Tencent, had to say:
Tencent intends to bring its expertise and resources to accelerate the growth of Sumo both in the U.K. and abroad, supporting Sumo in the market for top-tier creative talent, and the U.K. as a hub for game innovation. We believe the proposed transaction benefits all stakeholders, and delivers compelling value for Sumo shareholders, while enhancing Sumo’s capabilities for the future.