Swedish technology and games company Bublar Group has acquired AR/VR studio Vobling for $5.5 million.

The firm was purchased through a combination of stock and cash. Bulbar said the expansion will help further production capacity for the studio’s Hello Kitty AR title, due for release in 2019.

As part of the arrangement, Vobling will continue to operate under its own name as a subsidiary of Bublar Group.

Reality check

"The AR/VR market is growing rapidly," said Bublar Group CEO Magnus Granqvist.

"Through this acquisition, we strengthen our gaming studio with state-of-the-art knowledge, production resources and the ability to capture opportunities from the corporate market.

“Together, we will work towards the goal of becoming the leading AR/VR company in Europe."

Vobling CEO Andrew Ribbing added: "We are proud of the competent, profitable and fast-growing company we have built.”

"The industry is now on the cusp of major breakthroughs in AR/VR technology, evidenced by growing demand for our products and services. The synergies with Bublar will serve to increase our joint potential."