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This usually happens in the opposite direction, so this is a great day for a Canadian developer:

SilverBirch Inc., a digital media developer based in Toronto, has just announced a merger with California video game distributor Red Mile Entertainment.

Under the agreement, SilverBirch CEO Derek van der Platttells me, Red Mile will become a subsidiary of SilverBirch. After seeing company after Canadian company get snatched up by American organizations, this is a very welcome change.

Red Mile owns the worldwide rights to some pretty lucrative game franchises, including Sin City and the Heroes series. The merger will turn SilverBirch into a major world player and the work of Canada’s digital artists will be accessible to gamers across the globe.

It’s too bad, though, that a Canadian developer had to partner with an American distributor for this to happen. But what else was SilverBirch to do, if they could not find a Canadian distributor with a comparable world scope?

Still, it’s nice to know our digital developers are in a position to acquire American companies. Maybe one day we’ll not only have the world’s best digital content developers, but the world’s best distributors as well.

Categories: Deal Flow