Atari has announced an agreement to acquire Hipster Whale, the Melbourne-based studio behind hit mobile titles Crossy Road and PAC-MAN 256, in a move that strengthens the company's position in the mobile gaming market.

Founded in 2014 by Matt Hall and Andy Sum, Hipster Whale has become one of mobile gaming's most recognised studios. Its breakout title, Crossy Road, has surpassed 340 million downloads worldwide, earned numerous industry awards, including an Apple Design Award and still attracts over 6 million MAU.

The acquisition will expand Atari's mobile development and publishing capabilities while giving Hipster Whale access to Atari's expertise in publishing, licensing, distribution, and hardware. Following the deal, co-founder Matt Hall is expected to take on a leadership role overseeing Atari's expanding mobile development efforts.

In a press release, Atari Chairman and CEO Wade Rosen said "The acquisition of Hipster Whale is a significant milestone in Atari's growth plan." 

"Atari and Hipster Whale share DNA for classic retro-style gaming, and together we can lean on each other’s strengths - Hipster Whale for mobile gaming, and Atari for premium gaming - to significantly expand our mobile business" added Rosen. 

The deal comes as Atari continues to expand its mobile gaming portfolio through projects with Netflix, Amazon and AirConsole, alongside franchises including RollerCoaster Tycoon and Vampire Falls. Atari will acquire Hipster Whale for an initial consideration of $29.3 million, with an additional earn-out of up to $10 million based on future performance.