1st Feb 2019 09:06
LONDON (Alliance News) - Sumo Group PLC on Friday announced the acquisition of Red Kite Games Ltd for GBP2 million in total.
Red Kite is a work-for-hire studio which provides engineering and code support services to the video games industry.
Sumo said the net consideration is around GBP1.5 million, and it has also taken on GBP500,000 of net cash.
Red Kite "is well known to Sumo", the latter said, and they have worked together for several years on a number of titles.
Based in Huddersfield, Red Kite was founded by former Rockstar Games developer Simon Iwaniszak and has worked with companies such as Codemasters, Sony Computer Entertainment, and Activision.
In its year ended January 2018, Red Kite produced earnings before interest, tax, depreciation, and amortisation of GBP400,000 on revenue of GBP900,000.
Sumo Chief Executive Carl Cavers said: "Red Kite is an established brand with talented people, providing engineering and code support services to some of the biggest names in the industry.
"Simon and his team are already well known to us and we are confident Red Kite will integrate quickly and successfully. On behalf of the whole group, I extend a warm welcome."
Sumo shares were untraded on Friday, last quoted at a price of 128.50 pence each.
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