This deal broadens Sumo Group’s presence on the West Coast of the US and it is expected to complete by the end of October 2020.
Sumo Group is one of the UK’s largest providers of creative and development services to the video games and entertainment industries, delivering full-service visual and development solutions from initial concepts to production and development and post-release support. The company announces its largest acquisitions to date, with a $100 million deal for the US-based developer Pipeworks Inc.
We are absolutely thrilled to be joining Sumo Group. Our ambition is to be the best and most innovative game developer in North America and this will be a ‘level-up’ for all of us at Pipeworks.Lindsay Gupton, Pipeworks CEO
Founded in 1999, Pipeworks is a co-development studio with a big list of industry partners. The company has shipped close to 100 games including Prominence Poker, EA Sports Madden NFL series, ReLogic’s Terraria, and projects for Wizards of the Coast. It generated $19.4m revenue in the year ended 30th June 2020, with an underlying adjusted EBITDA of $4.2m.
We are delighted to announce the acquisition of Pipeworks, the largest acquisition Sumo Group has made since IPO. The acquisition gives us an instant, established and significant presence in the important North American market, with improved access to both new and existing clients and markets.Carl Cavers, Sumo CEO
With this acquisition, Sumo Group will have a significant presence on the West Coast of the US with a Pipeworks additional team of 134 to the total Sumo Group workforce, which is now just short of 1,000 people worldwide. The deal is for an initial consideration of $59.5m, with $35m in cash and $24.5m through the issue of new equity in Sumo Group.