Video games development services company Sumo Group (SUMO:AIM) announced the strategic acquisition of polish based PixelAnt Games on Monday, sending the shares 4% higher to 366.6p.
The acquisition gives Sumo an immediate presence and an established base for future growth in what the company described as Poland’s 'booming' video games development industry.
The Wroclaw-based firm’s 13 developers are well known to the Sumo Digital management through their current work on Sumo projects.
SPRINGBOARD FOR GROWTH
Chief executive Carl Cavers commented, ‘Poland has been on our radar for some time and the acquisition of PixelAnt, who we know so well, is a great way for us to gain entry to this exciting market.’
Adding headcount and talent is a key pillar of the company’s growth strategy and, Shore Capital noted, ‘we would be unsurprised to see further M&A activity from the Group over the 2021 financial year and the near future.
‘We expect to hear more details during the 2020 results report, which is due on Wednesday, 31 March 2021.’
The group paid £250,000 for PixelAnt with further amounts payable dependent on the level of earnings before interest, taxes, depreciation and amortisation (EBITDA) in the two years to 21 March 2023.
The plan is to expand the studio's headcount rapidly to access the growing pool of high-quality developers in the Polish market with the goal of winning third party contracts while continuing to work on Sumo Digital projects.
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