Eidos Plc, the UK-based entertainment software company, is paying up to $23m for a 25% stake in Madrid, Spain games developer Pyro Studios SL. As part of the deal, it will also acquire a 75% interest in a related Spanish distributor Proein SA.
The acquisition is part of Eidos’ strategy of partnering with independent development studios in a way that allows them to retain most of the financial benefits of their work while benefiting from centralized support from Eidos.
Pyro developed the Commando games series, which was Eidos’ second largest selling title in Europe last year. Eidos, who will finance the deal from existing cash resources, believe the acquisition will add to earnings in the current financial year. Pyro employs 75 games developers and has three products due for release in the next 18 months.