CCP Games' Newcastle studio has been acquired for an undisclosed figure by Sumo Digital, along with a significant portion of its staff.
The Newcastle developer becomes Sumo's fourth studio, in addition to its Sheffield and Nottingham branches, as well as a team based in Pune, India. Last year, the firm also acquired art studio Atomhawk.
34 staff transfer from CCP to Sumo, with former executive producer Owen O'Brien retained as the new studio director. The team will remain in Newcastle.
The acquisition follows the news that CCP is shifting away from virtual reality development and was selling the UK studio, which was instrumental in the development of VR dogfighting title Eve Valkyrie. It's unclear whether this means Sumo will start branching into virtual reality.
CCP CEO Himalr Pétursson said: "As we say goodbye to our former colleagues we know that they will do great things there, and we can't wait to see what they do next."
Sumo Digital's MD Paul Porter added: "As we continue to expand this was a great opportunity to bring an experienced, talented and tight-knit team on board."
Sumo Digital is currently developing Crackdown 3 and Dead Island 2. It enjoyed success last year with quirky platformer Snake Pass, and completed a £145m IPO in time for Christmas.