AAPL Apple Inc

By Micah Maidenberg

Epic Games Inc. said Tuesday it acquired the development company behind "Fall Guys: Ultimate Knockout", a deal it said would help bolster talent across the company.

Terms of the deal for Tonic Games Group weren't disclosed. Epic, based in Cary, N.C., is a privately held company that created the popular "Fortnite" game and has tussled with Apple Inc. over how the iPhone maker operates its App Store.

Epic needs "great creative talent who know how to build powerful games, content and experiences," Chief Executive Tim Sweeney said in a statement about the deal.

Tonic describes itself as a games development and publishing company with around 300 employees. It says it develops new games, brings them to market and invests in independent game developers.

The company's Mediatonic unit is behind the "Fall Guys" game, a multiplayer contest that has contestants competing to win a race as various obstacles get in the way.

Epic last year introduced an in-app payment system within "Fortnite" to bypass the 30% fee Apple charges through its App Store. The company booted "Fortnite" from the store, and Epic sued, alleging Apple has engaged in monopolistic behavior.

Apple has defended itself, at one point saying Epic was trying to keep money it owed the company.

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Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

March 02, 2021 14:48 ET (19:48 GMT)

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