Game has acquired augmented reality software business Ads Reality to grow the group’s digital capabilities and customer engagement.

Having already picked up a minority stake of the augmented reality (AR) software business in 2015, Game Digital has now taken full control of Ads Reality for an initial consideration of £2m and potential further performance-related payments of up to £18m.

Ads Reality specialises in the development of augmented reality across a range of industries including the video game, retail and entertainment sectors, “helping its clients drive increased mobile traffic volumes, store footfall and product sales”, it said.

The specialist gaming group said it has maintained a close relationship with Ads Reality since it developed the group’s AR capabilities for the ‘Scan it!’ application within the Game app in 2014.

Liberum analyst Adam Tomlinson said: “This represents a sound strategic deal, in our view, which enhances the group’s digital expertise, strengthening its own multichannel marketing capabilities and its strategy to be an effective provider of integrated digital marketing solutions to its publisher partners.”

A statement from Game said: “The acquisition represents a complementary strategic addition to the group’s digital capabilities which, when combined with Game’s multichannel marketing assets across its store estate, websites, apps and events business, will support the development of the group’s strategic priority to be an effective provider of integrated digital marketing solutions to its publisher partners, whilst at the same time driving its own customer engagement initiatives.”