Chinese multinational technology conglomerate, Tencent, is sealing a deal with the UK-founded game developer, Sumo Group, for $1.27 billion as it continues to add to its long list of acquisitions.
Sumo Group and Tencent started their business partnership in 2019, as Tencent bought 15 million shares or a 10 percent stake from Sumo Group in November that year. The partnership seems to have flourished well as Tencent has offered recently to fully acquire the video game holding company.
"The Board of Sumo firmly believes the business will benefit from Tencent's broad video gaming ecosystem, proven industry expertise and its strategic resources," non-executive chairman Ian Livingstone said.
The deal, however, is still up in the air as there is still no official decision from the holding company’s shareholders.
Sumo Group—or its work-for-hire video game developer Sumo Digital—is known for its long partnership with Sega in developing some Outrun and Sonic Racing games.
Sumo Digital was founded in 2003 at Sheffield, England by Carl Cavers, Paul Porter, Darren Mills and James North-Hearn.
The developer has also helped make other IPs like the rebooted Hitman series, some Forza Horizon games, Little Big Planet 3, Sackboy: A Big Adventure, Crackdown 3, and its most recent release Hood: Outlaws & Legends.
“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,” said Cavers.
"The future for Sumo looks more exciting than ever," he added.
(Images from Sumo Group)