Friday, July 30, 2021

Sumo Group acquired in £919m deal

Sumo Group, the video games developer with studios in Nottingham, is being acquired by Chinese tech giant Tencent in a £919 million deal.

Through a wholly-owned subsidiary, Sixjoy Hong Kong, Tensent will acquire the share capital of Sumo which members of the Tencent Group do not already own at a price of 513 pence per share.

Sumo is headquartered in Sheffield and has studios in Nottingham, Leamington Spa, Warrington and Pune, India and owns The Chinese Room in Brighton, Red Kite Games in Leeds, Lab42 in Leamington Spa and PixelAnt Games in Wroclaw, Poland.

Carl Cavers, Chief Executive at Sumo, said: “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.

“From a single studio in Sheffield, Sumo now totals 14 studios in five countries, spread across the globe, with more than 1,200 people.

“Sumo is and always has been a people business and great people make great games and enjoy great times. I am proud to lead such a talented and creative group of individuals.

“The three founders of Sumo, who work in the business, Paul Porter, Darren Mills and I are passionate about what we do and are fully committed to continuing in our roles. The opportunity to work with Tencent is one we just couldn’t miss.

“It would bring another dimension to Sumo, presenting opportunities for us to truly stamp our mark on this amazing industry, in ways which have previously been out-of-reach.”

James Mitchell, Chief Strategy Officer and Senior Executive Vice President of Tencent, added: “Tencent is pleased to have been an investor in Sumo since 2019, and we view the proposed combination as an evolution of our partnership.

“Tencent is a committed investor in the game industry, with a track record of supporting the growth of game studios around the world.

“We hold Sumo’s team and the games they produce in high regard, and its strategy and spirit of innovation have underpinned the success of the business over many years.

“Tencent intends to bring its expertise and resources to accelerate the growth of Sumo both in the UK and abroad, supporting Sumo in the market for top-tier creative talent, and the UK as a hub for game innovation.”

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