Why it matters: Tencent has been growing its portfolio at a feverish pace as of late, and it only continues this week with the acquisition of British video game developer Sumo Digital. The Chinese tech conglomerate will pay 513 pence in cash for each Sumo share, a 43 percent increase over Sumo's closing price of 358 pence on July 16. In total, the deal is valued at $1.27 billion.
Sumo was founded in 2003 and has put out a steady stream of titles ever since. Notable games developed by Sumo include Forza Horizon 2, LittleBigPlanet 3, Hitman and Hitman 2 and Crackdown 3, just to name a few.
Carl Cavers, one of the original co-founders, said the opportunity to work with Tencent is one they 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," Cavers added.
As mentioned, Tencent has been quite busy lately. Late last year, the company attempted to merge video game streaming sites Huya and DouYu, but those plans were recently struck down by China market regulators due to antitrust concerns. Tencent earlier this year also teamed up with Chinese police to help bust a massive video game cheating operation.
Sumo isn't the only British video game developer to change hands recently. In December, EA announced plans to scoop up Codemasters for $1.2 billion.
Image credit: Tingshu Wang, Reuters