Sheffield games firm Sumo snaps up US counterpart for £75m

Pipeworks, based in Eugene, Oregon, has shipped almost 100 games, including Prominence Poker, and ‘advanced technology solutions’ to nearly 50 clients.

It also uses its ‘game science’ in markets including the US public sector, distance learning, remote healthcare, and AI-driven simulation.

The firm employs 134 and takes Sumo Group's headcount to nearly 1,000 in 12 studios employing in four countries

Carl Cavers, chief executive officer, said it was the largest acquisition they had made since floating on the stock market in 2017.

He added: “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.

"Sumo Group is thriving. Our underlying market is very strong, and we are seeing good opportunities for new games."

Pipeworks’ clients include Electronic Arts, Wizards of the Coast, Google, Genvid, and Age of Learning.

Lindsay Gupton, chief executive of Pipeworks, added: "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.

“I've known Carl and the team at Sumo for a long time and have the greatest respect for them as a company, as game developers, and most importantly, as people.

“The cultural fit between Pipeworks and Sumo is remarkable, and we all love to make great games with great partners. I can't wait for this next big chapter in the long history of Pipeworks."

In May, Sumo snapped up 29-strong development company Lab 42 to keep its growth ambitions on track after the pandemic hit recruitment.

Lab 42 holds the World Snooker Tour games licence and was acquired for £600,000 from US-based You42 Inc.

Sumo had record revenues of £49m last year - a 26 per cent rise from 2018.

In November last year, the world’s largest video games publisher Tencent Holdings, based in China, acquired a 10 per cent stake in Sumo Group.

Job losses confirmed at Sheffield steel business.

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