sumo group

Sumo Group acquires Pipeworks Inc, amid rapid growth

Sumo Group has announced that it has acquired Oregon-based studio Pipeworks, amid a period of rapid growth for the Group.

The acquisition gives Sumo a significant and well-established presence in the West Coast, from which it intends to expand into the US market. The addition of Pipeworks’ 134-strong team brings Sumo’s headcount to just shy of 1000.

Pipeworks, founded in 1999, has a focus on advanced technology and innovative gameplay for both established and emerging IP. The company has developed or co-developed over 100 games and advanced technology solutions for almost 50 clients and partners. Client-IP games include Madden NFL20 and NFL21, co-developed with EA Sports.

The acquisition brings additional Own-IP to Sumo Group. Pipeworks recently secured the rights to free to play title Prominence Poker, which was originally created by Pipeworks and published by 505 Games.

“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 Studios,” Lindsay Gupton, chief executive officer of Pipeworks, commented.

“This is a major step forward for our business.  Having known Lindsay for some 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. Sumo Group is thriving. This is the largest acquisition Sumo Group has made since IPO. Our underlying market is strong, and we see 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,” added Carl Cavers, chief executive of Sumo Group. 

The acquisition comes at a time of strong growth for the Group, with its latest financial results showing the company achieving a 27% increase in revenue and more than doubling its profit before tax in the six months to 30 June 2020.

The results follow a busy year for the company so far, with seven games announced or released, including four Own-IP titles: Spyder, Little Orpheus, WST Snooker and Hood.

Sumo Group has continued its recruitment drive, despite the pandemic, with a further 66 people joining the business in the first six months of 2020. This includes the 29 staff from Lab42, which Sumo Group acquired in May.

“More people than ever are playing video games, as a result of the pandemic, and the market outlook remains extremely positive” said Cavers. “As a Group, we remain very well positioned to capitalise on this expansion in the market both organically and through targeted acquisitions, with a real focus on growing our business further. Our talented teams continue to produce high-quality, interactive content, which is well received by gamers across the globe. We are absolutely delighted with the achievements of our people under challenging circumstances, and, with strong visibility for FY 20, remain very confident in the Group’s prospects”

About Chris Wallace

Chris is a freelancer writer and was MCV/DEVELOP's staff writer from November 2019 until May 2022. He joined the team after graduating from Cardiff University with a Master's degree in Magazine Journalism. He can be found on Twitter at @wallacec42, where he mostly explores his obsession with the Life is Strange series, for which he refuses to apologise.

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