Chinese developer Utilzen has acquired Japanese studio Red, which makes the Sakura Wars series.
The partnership will see the two companies working together on porting existing properties to PC and smartphone titles, as well as allowing Red to continue to produce new IP.
"The future of our industry depends on our ability to create new game ideas that captivate our users and to extend those brands to other platforms such as smart phones," said Haiwen Lan, CEO of UltiZen.
"The acquisition of Red falls directly into the strategy. The exceptional quality of the team at Red and the game development expertise of our UltiZen teams will allow us to create the best game titles in the entertainment industry. This alliance is a true first for China's game industry. UltiZen and Red share the same vision of entertainment convergence and a common passion for innovation and creativity."