Sumo Group (LON:SUMO) has snapped up Lab42, a studio that has worked on titles including Snooker 19, Yakuza 0 and Football Manager Touch 18 in a deal worth $600,000.
The video game developer said the acquisition will support its growth strategy by adding 29 members of staff and strengthening its presence in the “talent hot spot” of Leamington Spa.
Lab42 studio, a cross-platform work for hire studio, has worked on 17 projects for console, PC and mobile, since it was established in January 2015.
Its clients have included Sega Europe Publishing, Klei Entertainment, Aspyr, Ripstone, Dovetail Games and Payload Studios.
The company holds an exclusive licence to use the World Snooker Tour brand and was the sole developer of the Snooker 19 game for consoles and PC, published by Ripstone.
Shares in Sumo Group were trading 3.00% higher at 189p on Friday morning.
The group noted that Lab42 is continuing development on World Snooker products and is expecting to launch additional games on new devices later this year.
The business, which was acquired from US-registered You42 Inc and led by MD Ed Blincoe, will continue to operate under the Lab42 name as part of the Sumo Group.
Lab42 reported unaudited revenue of £1.4m for the year ended 31 December 2019.
“The opportunity to buy Lab42, a business which is highly respected in the industry and well known to key members of our team, was both timely and compelling”, said Sumo’s CEO, Carl Cavers.
Cavers said the addition of 29 people as a result of the acquisition will keep the group’s organic growth ambitions “on track”, particularly amid challenges posed by Covid-19.
Despite some recruitment challenges as a result of the Covid-19 pandemic, Sumo said it has continued to operate well.
"The video games market is very strong and we are seeing some great opportunities to work on new games,” said Cavers.
Follow News & Updates from Sumo Group here: