The transaction, the terms of which were not disclosed, accents the growing importance of outsourcing in the games industry.

Babel, now a part of the Quatrro group of companies, will enjoy "major investment" across existing facilities in North America, Europe and India. Expansions in South East Asia and Eastern Europe are also planned.

Babel"s clients include virtually all of the industry"s major players, including EA, Activision, SCEA, Nintendo, Microsoft and Ubisoft, among others.

Babel"s 500 employees will remain with the company following the transaction.

Outsourcing firm Quatrro claims 2,000 employees.

Babel will retain its brand identity, and remain focused on the games industry, the company said.

Algy Williams, Babel co-founder, added, "This transaction with Quatrro and the D. E. Shaw group means business as usual at Babel, but we’ll now have far greater resources to service our clients.”