Chinese language tech large Tencent has introduced the acquisition of British online game firm Sumo Group for $ 1.27 billion (roughly £ 926 million). After the announcement, the Sheffield-based gaming firm shares soared 40%.
Tencent owns an eight.75% stake in Sumo and has now supplied 513 pence in money per share, a 43% premium over the most recent closing value of $ four.94.
It’s price mentioning that Sumo went public on the AIM market of the London Inventory Change in 2017.
The acquisition of Sumo World will increase Tencent’s presence globally, which already has 14 studios in 5 international locations with greater than 1,200 staff.
Based by Carl Cavers, Darren Mills and Paul Porter in 2003, Sumo Digital is an impartial AAA rated online game developer with studios in Newcastle, Sheffield, Nottingham, Leamington Spa, Warrington and Pune, India.
Carl Cavers, Sumo CEO, stated: “The three founders of Sumo, who work within the enterprise, Paul Porter, Darren Mills and myself, are obsessed with what we do and are absolutely dedicated to persevering with in our roles. The chance to work with Tencent is one which we couldn’t miss. It might carry one other dimension to Sumo, presenting us with alternatives to really stamp our mark on this wonderful trade, in ways in which have been beforehand out of attain. “
“From a single studio in Sheffield, Sumo now totals 14 studios in 5 international locations, unfold the world over, with over 1200 folks. Sumo is and all the time has been a folks’s enterprise and nice folks make nice video games and revel in nice moments. I take delight in main such a proficient and artistic group of individuals.
James Mitchell, Tencent’s chief technique officer and senior govt vice chairman, added: “Tencent is happy to have been an investor in Sumo since 2019, and we view the proposed mixture as an evolution of our partnership. Tencent is a dedicated investor within the video games trade, with a historical past of supporting the expansion of recreation studios around the globe. We maintain the Sumo crew and the video games they produce in excessive regard, and their technique and spirit of innovation have underpinned the success of the enterprise for a few years.
“Tencent intends to carry its experience and sources to speed up Sumo’s progress each within the UK and overseas, supporting Sumo available in the market for top-tier inventive expertise and the UK as a hub for innovation from video games. We imagine that the proposed transaction advantages all stakeholders and provides compelling worth for Sumo shareholders whereas enhancing Sumo’s capabilities for the longer term. ”