Mattel is set to fully acquire mobile studio Mattel163 from Chinese publisher NetEase.

The agreement values Mattel163 at $318 million. Mattel will acquire NetEase’s 50% stake in the joint venture, funding more than half of the purchase price with its share of the venture’s existing cash.

Mattel expects to complete the acquisition by the end of the first quarter.

Mattel CEO and chairman Ynon Kreiz said the acquisition will “play an important role in [its] digital strategy and significantly enhance [its] capabilities in self-publishing.”

Kreiz continued: “The Mattel163 team has done remarkably well building this business from the ground up and we look forward to welcoming them on board.

“Our portfolio of iconic brands lends itself perfectly to the digital world and the acquisition will strengthen our position and accelerate our presence in a large, high-growth market.”

Mattel163 was established in 2018 as a joint venture between Mattel and NetEase. The studio has developed several games based on Mattel’s IP, including Uno, Uno Wonder, Phase 10, and Skip Bo.

The developer’s portfolio has generated approximately 20 million monthly active users and achieved over 550 million downloads globally.