Global game developer acquires stake in Sheffield-based Sumo Group

The global game developer Tencent Holdings has acquired a stake in the Sheffield-based Sumo Group, it was announced today.

Friday, 15th November 2019, 8:27 am
Carl Cavers, chief executive of Sumo Group

In a statement, Sumo said: “The company announces that Tencent Holdings Limited (through a direct wholly owned subsidiary) and Perwyn Bidco (UK) Limited have notified the company that they have entered into an agreement for the acquisition by Tencent from Perwyn of 15,000,000 shares in the company.

“Tencent is one of the world’s leading internet companies. Following the acquisition of these shares from Perwyn, Tencent will hold a 9.96 per cent interest in the company.”

The shares are being acquired by Tencent from Perwyn, a family-funded private equity business and investor in Sumo Group since September 2016. Following the sale of these shares, Perwyn will retain a 17.38 per cent interest in the company.

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Carl Cavers, chief executive officer of Sumo Group, said: “We are delighted that Tencent have chosen to acquire a shareholding in the company, and we look forward to working with Tencent to explore co-development opportunities.

“When Perwyn invested in Sumo Digital in September 2016 we were a private company with annual revenue of around £24m and operated from three studios in two countries. We are now a public company and, following the recent announcement of our new studio in Warrington in the north west of England, now have ten studios in three countries and reported revenue of more than £38m for the year ended 31 December 2018. I would like to thank Perwyn, once again, for their original investment and for their ongoing support of the business.”

Steven Ma, Head of Tencent Games, said, “We are glad to invest in Sumo Group, a leading independent co-development studio. We look forward to supporting Sumo’s growth and exploring collaborations with the company to bring more interactive entertainment experiences to global audiences.”

Tencent operates communications and social platforms, digital content payment and cloud businesses. Tencent is the world’s largest game developer and publisher by revenue. It has invested in several game developers and publishers globally.