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MCV understands that Gem has agreed a deal to acquire digital distributor Ztorm.
The move is a surprise following strong rumours that Sony was on the brink of sealing a deal to buy the firm last year.
Ztorm specialises in the distribution of a variety of digital media including games, films, audiobooks and music. It also offers hosting services, online payment systems and customer service.
Crucially, in the UK, Ztorm already supplies digital services to key UK retailers such as GAME, Gamestation and DSG’s PC World, Dixons and Currys.
The white label firm also works with publishers including EA, Activision, Ubisoft, Rockstar, Bethesda, Square Enix, THQ, Sega, Disney, Namco Bandai, 2K Games and NCsoft.
It currently offers around 1,500 PC titles across its various partnerships with members.
When contacted by MCV representatives from neither Gem nor Ztorm were available to comment.
