tinyBuild Inc (LSE:TBLD) has completed an 'acquihire' of Demagic Games, a development studio with 23 staff currently based in Ukraine and Russia with which it has an existing relationship.
The US-based, London-quoted video games developer has been working with Demagic for over a year on various projects including its Hello Neighbor 2 and Deadside games, as well as unannounced titles.
An acquihire is where a developer's staff or target IP is acquired rather than buying a whole corporation.
"By bringing Demagic Games in-house, the company expects to reduce dependencies on external studios and increase visibility on the production process, in line with its core strategy," tinyBuild said.
The company said the small acquisition will have no material impact on its earnings.
Broker Shore Capital noted that tinyBuild has been quick to provide support to staff that are currently within Ukraine and Russia, relocating all of the most at-risk workforce with further support and relocation options ongoing.
"TBLD has stated intentions to open a third studio in Europe which may ensure a long-term solution and, as previously confirmed, projects have remained on track throughout. We believe the global network and existing hybrid model could be utilised, to some degree, to allocate work and resources if needed," said analyst Katie Cousins.