Tencent is going to acquire Sumo Group for $1.3 billion
Another major Western asset will soon come under the management of Tencent. The Chinese giant announced a deal with the British Sumo Group, known among other things for Forza Horizon 2 and Sackboy: A Big Adventure. The takeover will cost the holding company $1.27 billion.
Sackboy: A Big Adventure
Now Tencent is the second largest shareholder of Sumo Group.
He owns 8.75% of the company’s shares. After the transaction, the holding will already fully own the company and all its studios.
“The Board of Directors of Sumo Group firmly believes that it will benefit from the agreement with Tencent. The corporation will join a large list of video game companies owned by Tencent, it will be able to count on cooperation with industry experts and strategic resources,” Ian Livingstone, Chairman of the Board of Directors of Sumo Group, commented on the deal.
Sumo Group shareholders will receive 513 pence or about $7 in cash per share. Despite the fact that before the Tencent offer, British shares were trading 43% cheaper — 358 pence or $4.9. As a result, the shares of Sumo Group on the stock exchange naturally soared by 42% to a record 508 pence apiece.
Sumo Group co-founders Carl Cavers, Paul Porter and Darren Mills will remain in leadership positions.
Sumo Group was founded in 2017 as the parent company of the developer Sumo Digital. It also includes 13 other gaming companies, the most famous of which are The Chinese Room and Pipeworks Studios. Sumo Group has over 40 projects on its account, including games such as Hood: Outlaws & Legends, Crackdown 3, Terraria and Little Orpheus.
Note that in 2021, Tencent has become much more active in the M&A market. According to Niko Partners‘ calculations, for the whole of 2020, the holding invested in 31 companies. In the first half of this year, the number of transactions has already exceeded 60. One of the last deals was the purchase of a majority stake in the Berlin studio Yager, which developed the shooter Spec Ops: The Line.
