Indie games label Team17 has acquired the parent company of educational games developer and publisher StoryToys.
The firm has snapped up TouchPress for a $26.5 million initial payment, with another $22.5 million in the pipeline if the firm hits certain targets.
StoryToys was acquired back in 2011 and has worked with huge brands like LEGO, Disney, Pixar and Warner Bros.
"I am thrilled to be welcoming StoryToys into the Team17 family and believe our shared culture and values perfectly align," Team17 CEO Debbie Bestwick MBE (pictured) said.
"In StoryToys, we are acquiring a highly creative and successful team whose ability to both entertain and educate children is truly best in class.
"Their track record is without question but the depth of talent that exists within the business gives us an unrivalled position within a hugely exciting and high growth edutainment area.
"We look forward to working closely with the whole StoryToys team and are delighted to be able to not only support their ambitious growth prospects but to provide a strong and stable platform to accelerate their development. Team17 prides itself on its culture and on embracing ambitious management teams - today's announcement is an example of how we intend to make that a reality."
StoryToys CEO Emmet O'Neill added: "Team17 is the perfect home for StoryToys as we enter into this incredible new chapter. Our goal is to be the number one provider of edutainment content for young children. Collaborating with Team17 will make that a faster and more exciting journey.
"We believe in creating the best possible digital learning experiences for children. We look forward to the possibilities that are opened up by collaborating with what we believe to be the best partner to deliver our ambitions."