Keywords Studios has entered the Australian market through its 85 per cent interest investment in Tantalus Media.
The consideration is for up to $46.8 million, with an initial amount of $30.6 million to be paid, of which $12.2 million will be provided in shares while the remaining $18.4 million is a cash sum.
To receive the final $16.2 million, Tantalus will need to hit a number of targets over a two-year period.
"This is a great day for our team, and we are delighted to be joining the Keywords Studios family," said Tantalus CEO Tom Crago.
"We share the same outlook on the opportunities within the video game industry, and we're grateful to Keywords Studios for investing in our growth, not just in Tantalus, but in the wider Australian market.
"This provides us with a great platform for further expansion, and with the talent and expertise available in this part of the world, we are very excited about the future.
"For all of us, that means being able to work on more games than ever, with our existing publisher partners and beyond."
Welcome to the family
Tantalus was founded in 1994 and is based in Melbourne. It is known for its work on some major franchises, including Sonic, Mass Effect and The Legend of Zelda.
"Tantalus brings 27 years of experience of video game development in Australia for some of the largest global publishers and leading titles," said Keywords Studios interim CEO Jon Hauck.
"The talented team, led by Tom Crago and supported by an experienced management team, has an impressive track record of development work on major franchises including Age of Empires, Sonic Mania, The Legend of Zelda, Mass Effect, Cars and Cities: Skylines.
"We are delighted to welcome Tantalus to the Keywords Studios family. As our first investment in Australia, we are very excited to work with Tom and his talented team who will bring invaluable expertise and market knowledge as we expand our presence in this attractive and growing region."
The Australian firm is the latest in a line of acquisitions made by Keywords, as the company snapped up PR agency Indigo Pearl and audio firm Jinglebell last December.