Canada-based mobile game developer Iugo Mobile Entertainment has agreed to an acquisition by video game holding company Embracer Group’s Deca Games subsidiary that will allow digital media company Gree to exit.
The size of the deal has not been disclosed but Embracer will buy the company through a mixture of cash and shares, and it could potentially be boosted by earnout payments. The transaction is expected to close in February next year.
Founded in 2003, Iugo develops free-to-play mobile games and is the co-creator and developer of The Walking Dead: Road to Survival, which has been installed more than 45 million times since its release in 2015.
The company has also worked with global publishing partners on titles such as Middle-Earth: Shadows of War and Knights & Dragons.
Japan-based Gree made a minority investment of undisclosed size in Iugo back in 2012, after it opened its first North American office the previous year.
Hong-Yee Wong, founder and president of Iugo, said: “This is an exhilarating time for mobile games and we are thrilled to join the Embracer Group.
“We have strong alignment in core values and share common strategies in long-term thinking and planning. Iugo is devoted to creating great mobile game experiences and this collaboration will propel us to play an even bigger role in the industry.”