HB Studios, a Lunenburg, NS, gaming studio with a staff of about 80, has agreed to be acquired by New York-based Take-Two Interactive Software for an undisclosed price.
Take-Two, which is listed on the Nasdaq with a valuation of almost US$20 billion (C$24.8 billion), announced the deal Monday as it also said it has struck a partnership with iconic golfer Tiger Woods. The winner of 15 Majors will appear on the packaging of and promotions for the company’s PGA Tour games, which are developed by HB Studios.
The New York company, whose brand name is 2K, did not reveal any financial details, but said it expects to close the purchase of HB Studios this month.
“Thrilled for HB Studios and our team to be joining the Take-Two Interactive Software, Inc. and 2K organization,” HB Studios CEO James Seaboyer said in a post on LinkedIn on Monday. “Oh, and welcome to the Team, Tiger Woods!”
The HB Studios acquisition is part of a wave of takeovers of digital companies in Atlantic Canada, led by Nasdaq’s US$2.75 billion acquisition of St. John’s-based Verafin in November. That wave has carried over to 2021, with several deals being announced in the first quarter.
Read our Coverage of Other Recent Exits
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HB Studios has been the centrepiece of the region’s gaming industry since Englishman Jeremy Wellard set up the business in 2000. He had married a Nova Scotian and they moved to the South Shore. With nothing else to do, he returned the career he’d had back in the U.K. – developing video games – and opened his own studio.
HB was soon developing console, mobile and PC games for such major brands as Electronic Arts. With the release of PGA TOUR 2K21, HB Studios has shipped more than 51 titles, selling more than 30.5 million units and contributing to 21 others.
Wellard handed off active management of the company in 2015, and the venture has continued to produce games with a focus on online golf games, such as The Golf Club franchise.
“The team’s love and knowledge of golf is immediately evident in our games,” said Seaboyer in the statement. “We’re thrilled to officially become part of the 2K family and continue development of the PGA TOUR 2K franchise. Our work with 2K on PGA TOUR 2K21 brought our capabilities and aspirations to the next level, and we can’t wait to show the world what we’re planning for the future.”
Added 2K President David Ismailer: “Through our new partnership and acquisition of HB Studios, we’ve reaffirmed our commitment to the PGA TOUR 2K franchise, expanded on our successful independent studio model and invested in both the right people and resources to bolster our portfolio of world-class sports experiences.”
