Sheffield-based Sumo Group has acquired Huddersfield’s Red Kite Games in a notable £2 million deal. This acquisition integrates Red Kite, known for its engineering and code support expertise, into Sumo’s expanding portfolio.
Sumo Group, a prominent player in the video games industry, now gains access to Red Kite’s talented team, enhancing its strategic capabilities within the competitive gaming sector.
Sumo Group’s Strategic Move
Sumo Group, a leading creative and development service provider in the gaming industry, has acquired Red Kite Games for approximately £2 million. This acquisition includes around £500,000 of cash on Red Kite’s balance sheet, making the net consideration close to £1.5 million.
Red Kite Games’ Background
Founded by former Rockstar Games developer Simon Iwaniszak in 2012, Red Kite Games specialises in engineering and code support services. The Huddersfield-based studio employs 27 individuals and has collaborated with major industry players.
Leadership Comments on the Acquisition
Simon Iwaniszak, Red Kite’s Studio Director, conveyed enthusiasm for the new opportunities and challenges that being part of Sumo Group will bring.
Significance of the Deal
Sumo’s long-standing relationship with Red Kite is set to deepen, leveraging the combined expertise to achieve greater innovation and efficiency.
Financial Context
The deal follows Sumo’s previous acquisition of The Chinese Room, based in Brighton, for over £2 million. This indicates Sumo’s ongoing strategy to expand its portfolio through targeted acquisitions.
Future Prospects for Red Kite
The acquisition offers Red Kite access to Sumo’s extensive resources and industry connections, setting the stage for ambitious projects and growth.
Industry Impact
By integrating Red Kite, Sumo not only strengthens its internal capabilities but also positions itself favourably against competitors.
Conclusion
As Red Kite integrates into Sumo, both entities are expected to benefit from mutual expertise, setting the stage for a more robust and dynamic collaboration.
Sumo Group’s acquisition of Red Kite Games underscores its strategic ambition within the competitive gaming sector. This move is poised to enhance both companies’ developmental strengths.
The successful integration of Red Kite is anticipated to foster innovation, efficiency, and growth, benefiting the broader video games industry.