Sumo Digital was founded in 2003 by Carl Cavers, Paul Porter, Darren Mills and James North-Hearn, four members of the former management team of Infogrames Studios, after that company had been closed down. In 2007, Sumo Digital opened a subsidiary studio in India, called Sumo India. In August 2007, Foundation 9 Entertainment announced that it was acquiring Sumo Digital, wherein North-Hearn became the manager of Foundation 9's European operations. North-Hearn subsequently became chief executive officer for Foundation 9 in March 2008. In November 2014, Sumo Digital's officers completed a management buyout from Foundation 9; in this transaction, Sumo Digital's management was backed by NorthEdge Capital and Foundation 9 was advised by GP Bullhound. In January 2016, Sumo Digital opened a third development studio, Sumo Nottingham, in Nottingham, England.
Parent company Sumo Group was formed in December 2017 and was floated. In January 2018, Sumo Digital acquired CPP Newcastle, the Gateshead-based studio of CCP Games. In August, the company acquired developer The Chinese Room. In February 2019, Sumo Digital acquired work-for-hire video game studio Red Kite Games. A few days later, the studio opened another new studio in Leamington Spa, England, to focus on mobile game development. In October 2019, Sumo North West was opened in Warrington, England; led by Evolution Studios co-founder Scott Kirkland. Lab42 and its 29 employees based in Leamington Spa were added to Sumo Digital's studios when Sumo Group acquired it May 2020. Sumo Digital announced a partnership with the blockchain-company Dapper Labs in October 2020. In February 2021, Sumo Digital acquired Polish video game studio PixelAnt Games.
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