The UK's Slitherine and US publisher Matrix Games have merged in a bid to dominate the PC strategy and war game genres, GamesIndustry.biz can reveal.
This deal will see Slitherine further embrace online business models as traditional routes to retail dry up - Matrix Games already serves around 90 per cent of sales through online distribution.
The two have partnered on distribution in the past, but the new deal, which was signed off this week, has been in serious negotiations since October last year.
Matrix Games and Slitherine will now merge all of their global operations, including offices in the UK, Australia, Germany, North America and Italy, but there will be no job losses as a result of the changes.
The companies, which both serve the niche PC strategy and war game markets, expect an annual turnover of around $12 million in the first full-year, with 25 games set for release over the next 12 months. It will boast a combined portfolio of around 150 titles.
"These games don't expire," said Marco Minoli of Slitherine. "We have a very big community that we serve and they are very passionate about their games."
"Our existing catalogues, community and development strengths are all complementary," added David Heath, director of business development for Matrix Games. "We expect this merger to open up new opportunities for all of us that we could not have pursued as well alone."
Slitherine and Matrix Games already have around 100,000 regular users playing games on PC, and Minoli said that the company would also pursue other digital outlets, including iPhone and Xbox Live Arcade.
More details of the merger are expected to be announced early next week.