Mobile games firm Jam City has announced the sale of its Montreal-based developer Ludia.

The company reached an agreement with a group of Canadian investors and members of Ludia’s senior management team to sell the studio as well as its portfolio of titles.

Jam City said while it was “not actively seeking a sale” it was “presented with a compelling offer to acquire the studio.”

It clarified that the buyout “is not expected to significantly impact” its overall business, and its upcoming pipeline of releases “remains unchanged.”

The transaction was backed by investors including Fonds de solidarité FTQ, Investissement Québec, BDC Capital Growth Equity Partners, Export Development Canada, and Groupe W with additional backing from National Bank. Ludia’s former CFO Dominic Bécotte was also a consultant during the buyout process.

Ludia will now act as an independent developer, and has appointed Jimmy Gendron as CEO where he will lead approximately 130 employees.

A small number of Ludia staff will continue working at Jam City to support titles that remain with the games firm.

Ludia founder Alexandre Thabet is also rejoining the company following the buyout as a shareholder and will serve as chairman of the board.

“We are incredibly proud of Ludia’s talented team and their legacy of innovation in mid-core and AR gaming,” said Jam City CEO and co-founder Josh Yguado. “They are an exceptionally capable and creative group, and we have full confidence in Ludia’s bright future.”

Ludia CEO Jimmy Gendron added: “We are deeply grateful to our partners and teammates at Jam City for their support and collaboration.”

“This return to independence marks the beginning of an exciting new chapter for Ludia. I am thrilled about our future, driven by the talent of our team and the support of top-tier financial partners. We now have the opportunity to bring an ambitious vision to life, delivering games that captivate millions of players worldwide.”

Jam City acquired Ludia for $165 million in September 2021.