SUMO.L Share News (SUMO)

(Sharecast News) - Video game creative and development services company Sumo Group announced the strategic acquisition of Wroclaw-based PixelAnt Games on Monday.
The AIM-traded firm said it would create an "immediate presence" for it, and an established base for growth, in Poland's "booming" video games development industry.

It said the industry was growing rapidly in Poland, adding that PixelAnt, founded in July 2020, was "well known" to Sumo Digital's management, with its team of 13 developers currently working entirely on Sumo Digital projects.

Following the acquisition, PixelAnt would sit alongside Sumo Digital's other nine studios and continue to operate under the leadership of current studio directors Pawel Rohleder and Adam Lason.

With the support of the Sumo brand, the strategy was to expand the studio's headcount rapidly, accessing the growing pool of high-quality developers in the Polish market and focus on winning third party contracts, while continuing to work on Sumo Digital projects.

The PixelAnt team would also work on own-intellectual property opportunities.

Sumo said it paid an initial cash consideration of £0.25m for PixelAnt.

A further amount could be payable, in Sumo Group shares, depending on the EBITDA achieved in the two years to 31 March 2023.

The acquisition of PixelAnt took Sumo Digital's studio count to 10, and the group's total to 13, across five countries.

"Increasing headcount is a key pillar of our growth strategy and accessing new pools of high-quality talent is vital to the successful execution of that strategy," said chief executive officer Carl Cavers.

"I'm really pleased that Adam and Pawel can see the benefits of joining the Sumo family.

"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."

At 0859 GMT, shares in Sumo Group were up 2.83% at 361.95p.