厂丑别蹿蹿颈别濒诲-丑别补诲辩耻补谤迟别谤别诲听Sumo Group听has swooped for US studio听Pipeworks听in a $100 million deal.听
The listed video game developer and publisher has acquired听Lake Street Labs Buyer Corp, the听owner of听Oregon-based听Pipeworks.听
The听deal is for an听initial consideration of $59.5m, with听$35m听in cash and听$24.5m through the issue of new equity in Sumo Group.听
Founded in 1999,听Pipeworks听has shipped close to 100 games听including听Prominence Poker. It also delivers听technology solutions to nearly 50 clients and partners, including EA Sports and its Madden NFL franchise.听
Pipeworks听also听develops听emerging technology and game science听solutions for听the US public sector, distance learning, remote healthcare and AI-driven simulation.听
It听generated听$19.4m revenue听in the year ended 30th听June 2020, with听underlying adjusted EBITDA of $4.2m.听听
The deal, which is expected to complete by the end of October 2020,听gives Sumo Group a significant presence on the West Coast of the US.听
“We are delighted to announce the acquisition of听Pipeworks, the largest acquisition Sumo Group has made since IPO,鈥� said Sumo CEO听Carl Cavers.听
鈥�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.听听
鈥�Having known听[Pipeworks听CEO]听Lindsay听[Gupton]听for a long time and been a keen follower of听Pipeworks, I am naturally delighted to welcome Lindsay and his team to Sumo Group and look forward to working together and sharing an exciting future.听 This is a major step forward for our business.鈥�听
The addition of听Pipeworks鈥� 134-strong team takes the group’s headcount to nearly 1,000.听
Gupton听added:听“We are absolutely thrilled to be joining Sumo Group. Our ambition is to be the best and most innovative game developer in North听America听and this will be a ‘level-up’ for all of us at听Pipeworks.听听
鈥�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.听听
鈥�The cultural fit between听Pipeworks听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听Pipeworks.”听
Zeus Capital acted as lead financial adviser on the transaction, while Jefferies was sole adviser to Pipeworks on the sale.