VC-backed 6waves buys Chinese game developer Smartron5

Smartron5, which has received past financing from Origo Partners, develops games for Asian and international social networks. The company's operations will now be folded into 6waves Lolapps' business. The terms of the acquisition were not disclosed.

6waves Lolapps, which is backed by Insight Venture Partners, Polaris Venture Partners and Nexon, now has Asian offices in Beijing, Hong Kong and Tokyo, in addition to its operations in London and San Francisco. The company claims that its games, including marquee title Ravenworld, has attracted more than 40 million players.

According to the company, 6waves Lolapps' Asian offices collective have more than 75 people, expanding the company's overall headcount to 170 employees. As part of the deal, Smartron5's CEO Gage Galinger will become 6waves Lolapps' vice president of content development, and will lead the company's China operations. Galinger has previously worked with companies including Electronic Arts, Enorbus, Microsoft and Blizzard.

"The Asian market is complex and the Smartron5 team brings Western-production values with a deep understanding of how to be successful in China," Rex NG, CEO of 6waves Lolapps, said in a release. "This addition to our team is key to our globalization strategy and will benefit our own game development efforts as well as those of our publishing partners."

Gaming assets have proved to be popular venture investments in China given the widespread gaming culture juxtaposed to a growing number of internet users. Just last month, Legend Capital led a Series B round of funding worth $30 million for Chinese social gaming company Happy Elements, joined by existing investor DCM.

Cross-border transactions like 6waves Lolapps' acquisition has also materialized as a viable expansion strategy for these companies. Earlier this year, for example, Chinese gaming developer UltiZen Games - which has received funding from Jafco Asia, Hotung Investment Holdings and Tokio Marine Investment Services -acquired Japanese developer Red Entertainment for an undisclosed price.

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• Topics
• Greater China
• Media
• Technology
• Venture
• China
• TMT
• Venture
• Origo Partners
• Polaris Principal Finance