Iowa-based developer Budcat Creations has been acquired by Activision.
The studio, which has worked with the publisher on recent titles Guitar Hero III: Legends of Rock, Guitar Hero: Aerosmith and Guitar Hero World Tour. It's currently developing another game in the Guitar Hero franchise. Although no financial terms were divulged, the company has said that it intends to keep the studio in Iowa.
"Budcat Creations is an outstanding developer with an experienced management team and a very talented group of programmers, designers and artists," said Mike Griffith, president and CEO of Activision publishing.
"In addition to strengthening our development capabilities on the Nintendo platforms, this acquisition increases our Guitar Hero development resources as we continue to grow the franchise and expand our global leadership position in the music-based genre."
Jeremy Andersen, general manager of Budcat Creations, added: "We are thrilled to partner with Activision and believe that this acquisition is a perfect fit for both companies."
"Their world class sales and marketing support coupled with best-in-class execution across all areas of their business means that we can focus our time and resources on what we love and do best - creating great games."