Beijing, Jul 19 (IANS): Chinese conglomerate Tencent has announced to acquire British video game company Sumo Group for $1.27 billion in an all-cash deal.

Sumo has developed Sony's PlayStation 5 launch title ‘Sackboy: A Big Adventure' and Microsoft's ‘Crackdown 3' for Xbox consoles and PC.

Tencent already has a 8.75 percent stake in Sumo, reports gamesindustry.biz.

"The three founders of Sumo, who work in the business, Paul Porter, Darren Mills and I are passionate about what we do and are fully committed to continuing in our roles," Sumo CEO Carl Cavers said in a statement.

"The opportunity to work with Tencent is one we just couldn't miss. It would bring another dimension to Sumo, presenting opportunities for us to truly stamp our mark on this amazing industry, in ways which have previously been out-of-reach," he added.

Sumo is the latest UK-based game company to be acquired for over $1 billion, after EA's acquisition of F1 developer Codemasters earlier this year.

"Tencent is proud to have been an investor in Sumo since 2019, and we view the proposed combination as an evolution of our partnership. Tencent is a committed investor in the game industry, with a track record of supporting the growth of game studios around the world," said James Mitchell, Tencent's Chief Strategy Officer.

"Tencent intends to bring its expertise and resources to accelerate the growth of Sumo both in the UK and abroad, supporting Sumo in the market for top-notch creative talent, and the UK as a hub for game innovation," the company added.