Virtuos shakes up UK gaming scene with strategic acquisition of Third Kind Games

Virtuos, a leading global video game development company, has made a significant move into the UK market by acquiring Third Kind Games, one of the country’s largest independent game developers. This acquisition not only marks Virtuos’ entry into the UK’s renowned gaming sector but also strategically positions the company within a key hub of game development innovation and excellence.

Virtuos Acquires Third Kind Games: A Major Step into UK’s Gaming Hub

The acquisition of Third Kind Games, headquartered in Leamington Spa, is a strategic maneuver by Virtuos to deepen its footprint in one of the world’s most influential gaming regions. Leamington Spa, often dubbed the “Silicon Valley of the UK” for gaming, has been home to several successful titles and studios, including the creators of Fable, Far Cry 5, and Forza Horizon.

Third Kind Games, founded in 2016 by a team of nine ex-Activision veterans, has established itself as a significant player in the industry. The team includes Darren Bowen (Chief Operating Officer), Graham Watson (Chief Technology Officer), Rav Tharanee (Chief Strategy Officer), Tim Dunn (Chief Product Officer), Dan Hughes (Lead Programmer), John Roxburgh (Art Director), Mike Nimmo (Principal Programmer), Nathan Coppard (Design Director), and Sylwester Zaluga (Technical Director). This team has been instrumental in developing AAA titles like Fable and Forza Horizon 4, showcasing their ability to deliver high-quality game development and co-development services.

Strategic Location and Market Impact

Virtuos’ acquisition of Third Kind Games strategically places it in the heart of the UK’s game development community. Leamington Spa’s significance in the industry is underscored by its long history of successful game development and its robust network of educational institutions, media, and associations that support the gaming industry. The acquisition enables Virtuos to leverage this vibrant ecosystem to enhance its service offerings and collaborate with other leading studios in the region.

Expansion Plans and Future Outlook

Post-acquisition, Third Kind Games will continue under the leadership of its founding team, with plans to expand its workforce significantly. The studio, currently comprising over 70 skilled developers, aims to double its headcount within two years to meet rising demand for flexible and innovative game development solutions. The expansion is driven by the need for increased capacity to handle complex AAA projects and to stay competitive in a rapidly evolving industry.

Rav Tharanee, Chief Strategy Officer of Third Kind Games, expressed excitement about the acquisition, highlighting the opportunity to continue growing and engaging in new AAA projects. Tharanee emphasized that the collaboration with Virtuos would enable the studio to push creative boundaries while maintaining its core identity and innovative spirit.

Statements from Leadership

Christophe Gandon, Managing Director of the Western Region at Virtuos, praised the Third Kind Games team for their success and their significant contributions to the global gaming market. Gandon highlighted the studio’s impressive portfolio and expressed enthusiasm about enhancing Third Kind Games’ co-development capabilities in response to growing market demands.

Virtuos has been on a rapid expansion trajectory, with recent additions to its portfolio including the establishment of a new studio in Tokyo, engineering-focused Virtuos Labs in Warsaw and Prague, and the acquisition of real-time VFX company Beyond-FX in Los Angeles. These moves reflect Virtuos’ commitment to expanding its global presence and enhancing its service offerings across multiple facets of game development.

Advisors and Company Background

Aream & Co. served as the exclusive buy-side financial advisor to Virtuos in the acquisition of Third Kind Games. Third Kind Games was advised by Level Up, Hansel Henson, and Burgess Hodgson. Founded in 2004 and headquartered in Singapore, Virtuos is renowned for its comprehensive game development and art production services. With over 3,800 employees across 23 offices worldwide, Virtuos continues to deliver high-quality content for a wide range of console, PC, and mobile games.