Tencent buys UK video game company Sumo for $ 1.3 billion

July 19 (Reuters) – Chinese tech giant Tencent Holdings (0700.HK) will buy video game company Sumo Group (SUMO.L) in a deal that values ​​the UK company at £ 919million ( $ 1.27 billion), the companies said on Monday. .

Sumo shareholders will receive 513 pence in cash per share, Tencent said. The offer is 43% premium over the last closing Sumo price of 358 pence. The stock has risen several times since listing on LSE’s junior market AIM in 2017 at 100 pence.

Tencent owns an 8.75% stake and is the second largest shareholder in the company, which has 14 studios in five countries and employs more than 1,200.

“Sumo’s Board of Directors strongly believes that the company will benefit from Tencent’s vast video game ecosystem, proven industry expertise and strategic resources,” said Sumo Non-Executive Chairman Ian Livingstone.

($ 1 = 0.7261 pounds)

Reporting by Muvija M in Bengaluru; Editing by Saumyadeb Chakrabarty and Arun Koyyur

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