Gaming giant Tencent has acquired UK-based Sumo Group. The Chinese company is offering 513 pence per share for Sumo Group, which values the developer at $1.26 billion.
Tencent already has a 8.75 per cent stake in Sumo, reports gamesindustry.biz.
The acquisition is another milestone for Tencent in the arena of gaming. Tencent already owns Riot Games and has a stake in a range of publishers including Activision Blizzard, Epic Games, Bluehole, Ubisoft, Supercell, Paradox Interactive, Bluehole, Grinding Gear Games as well as chat and video call platform Discord. The new deal naturally will have an effect on Sumo Group’s studio in Pune, given the troubled relations between India and China.
Sumo non-executive chairman Ian Livingstone said in a press release, “The board of Sumo firmly believes the business will benefit from Tencent’s broad videogaming eco-system, proven industry expertise and its strategic resources, which will help secure and further the aspirations and long-term success of Sumo. The board of Sumo considers that the acquisition is in the best interests of all stakeholders in the company and intends to unanimously recommend this offer to shareholders. Tencent’s offer of 513 pence per share demonstrates the tremendous achievements of the management team, both financial and operational, since Sumo joined AIM in December 2017 at 100p per share, and provides an outstanding return for shareholders.”
Tencent senior executive vice president and chief strategy officer James Mitchell said, “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. We believe the proposed transaction benefits all stakeholders, and delivers compelling value for Sumo shareholders, while enhancing Sumo’s capabilities for the future.”
With this acquisition, Tencent has reaffirmed its position as the leading gaming conglomerate in the ecosystem.