Tencent Acquires UK Game Developer Sumo Group After $1.26 Billion Deal

Prominent Chinese tech firm Tencent recently acquired UK-based video game developer Sumo Group through an all-cash buyout amounting to £919 million (around $1.26 billion). This deal will bring both companies’ gaming portfolios together.

Sumo shareholders were offered 513 pence per share, a 43% premium relative to Tencent’s closing price on Friday. Additionally, listed stocks of Sumo in the London Stock Exchange rose by 40% on Monday after news of the deal had been reported. Tencent now owns an 8.75% stake in Sumo.

Sumo was founded in 2003 and has become well-known for its various games like Hotshot Racing, LittleBigPlanet 3, Sackboy: A Big Adventure, and WST Snooker.

“In the 18 years since we founded Sumo, we have developed more great games than we could ever have imagined and enjoyed incredible trust and support from our clients, enabling us to grow into a global business, delivering consistently strong financial results,” explained Sumo CEO Carl Cavers.

“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,” affirmed Tencent’s chief strategy officer James Mitchell.

Source: CNBC