LONDON: Sumo Group has signed a contract to acquire Lake Street Labs Buyer Corp, the owner of Pipeworks for an enterprise value of up to $99.5 million, with initial consideration of $59.5 million.
This initial consideration is being satisfied as to $35 million from the Group’s existing cash resources and $24.5 million through the issue of new equity in Sumo Group.
Founded in 1999, Pipeworks is an innovative, well-established, and respected US video games developer based in Eugene, Oregon. It provides full development, co-development, and live operations to premier video game publishers and other partners. Since foundation, Pipeworks has shipped close to 100 games and advanced technology solutions to nearly 50 clients and partners.
Pipeworks is also a leader in the application of emerging technology and game science to adjacent complementary markets, including the US public sector, distance learning, remote healthcare, and AI-driven simulation.
Carl Cavers, Chief Executive Officer of Sumo Group, said: “We are delighted to announce the acquisition of Pipeworks, the largest acquisition Sumo Group has made since IPO. 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. Having known Lindsay for a long time and been a keen follower of 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. This is a major step forward for our business.
“Sumo Group is thriving. Our underlying market is very strong, and we are seeing good opportunities for new games, including Original-IP developed by our talented studios. I would like to thank our team, once again, for their great work, which continues to drive the Group’s success.”
Lindsay Gupton, Chief Executive Officer 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.”
Sumo Group’s businesses provide acclaimed development and design services to the video games and entertainment industries from studios in the UK, India, and Canada.
Sumo Digital, as the Group’s primary business, is one of the UK’s largest independent developers of AAA-rated video games, having studios in Sheffield, Newcastle, Nottingham, Leamington Spa, Warrington and Pune, India. The business has acquired three studios since IPO, which operate under their own names, BAFTA award-winning The Chinese Room in Brighton, Red Kite Games in Leeds, and Lab42 in Leamington Spa. Sumo Digital provides turnkey and co-development solutions to a global blue-chip client base.
Atomhawk is a multi-award-winning visual design company, with studios in Newcastle and in Vancouver (Canada), servicing the video games, film, and visual effects industries.
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