Californian 3D engine specialist Emergent Technologies will be merging its middleware and core engineering departments with those of Australian developer Krome, with Emergent becoming the sole licensor of any resulting product.
The partnership also heralds an agreement to internally develop a number of multiplatform products, which are spread across both digital and traditional retail sectors. The games should start hitting the market from 2011.
Krome Studios is still Australia's largest developer, despite recent slews of layoffs and has a history of cross-platform development, having recently worked on Microsoft's Game Room project. Krome's newest IP, Blade Kitten is due on XBLA, PSN and PC.
Emergent technologies is best known for its Gamebryo and Gamebryo LightSpeed development tools, which have featured in Fallout 3 and Oblivion. It's unknown whether the merger will result in the loss of any jobs at either company but Krome's Adelaide studio remains on notice of closure following the last round of redundancies.