- Tencent said it’s buying video game developer Sumo for $1.27 billion.
- The Chinese tech firm already has an 8.75% stake in Sumo.
- Sumo’s titles include Team Sonic Racing and LittleBigPlanet 3.
- See more stories on Insider’s business page.
China’s Tencent is buying Sumo, the video game developer behind Team Sonic Racing and LittleBigPlanet 3, for nearly $1.3 billion.
Shares in Sumo, of Britain, jumped 42% on Monday to a record high.
Tencent, the world’s largest gaming company, is on the hunt to acquire foreign video game developers. It already has stakes in Epic Games, the company behind Fortnite, Riot Games, and Ubisoft.
Sumo has accepted Tencent‘s offer of 513 pence (703 cents) cash per share, which values Sumo at £919 million ($1.26 million), the companies said Monday.
Sumo’s games include:
- Team Sonic Racing
- LittleBigPlanet 3
- Hitman 2
- Sackboy: A Big Adventure
- Crackdown 3
- Snake Pass
- Hood: Outlaws & Legends
Tencent already has an 8.75% stake in Sumo, making it the British developer’s second-biggest shareholder, Reuters reported.
If the deal goes through, Sumo will be the latest UK video games company to be purchased for more than $1 billion, following EA’s acquisition of Codemasters in February.
Sumo CEO Cavers said in a statement to Insider: “The three founders of Sumo, who work in the business, Paul Porter, Darren Mills and I are passionate about what we do and are fully committed to continuing in our roles. The opportunity to work with Tencent is one we just couldn’t miss.”