The agreement will have an initial consideration of $59.5 million, of which $35 million will be given in cash while the remaining $24.5 will be through equity in Sumo Group.
Pipeworks was founded in 1999 and is known for its co-development portfolio, as well as its work with live operations. Since being founded, the US-based company has worked on nearly 100 games.
"We are absolutely thrilled to be joining Sumo Group. Our ambition is to be the best and most innovative game developer in North America, and this will be a 'level-up' for all of us at Pipeworks," said Pipeworks CEO Lindsay Gupton.
"I've known Carl and the team at Sumo for a long time and have the greatest respect for them as a company, as game developers, and most importantly, as people. The cultural fit between Pipeworks and Sumo is remarkable, and we all love to make great games with great partners. I can't wait for this next big chapter in the long history of Pipeworks."
With this deal, Sumo Group will be able to expand across the US, securing new clients from its new west coast studio.
Moreover, the acquisition brings with it 134 employees, bringing Sumo's headcount to nearly 1,000.
"We are delighted to announce the acquisition of Pipeworks, the largest acquisition Sumo Group has made since IPO. The acquisition gives us an instant, established and significant presence in the important North American market, with improved access to both new and existing clients and markets," said Sumo Group CEO Carl Cavers.
"Having known Lindsay for a long time and been a keen follower of Pipeworks, I am naturally delighted to welcome Lindsay and his team to Sumo Group and look forward to working together and sharing an exciting future. This is a major step forward for our business.
"Sumo Group is thriving. Our underlying market is very strong, and we are seeing good opportunities for new games, including Original-IP developed by our talented studios. I would like to thank our team, once again, for their great work, which continues to drive the Group's success."
Earlier this year, Sumo acquired Leamington Spa-based studio Lab42, best known for its work with the World Snooker Tour license.