The acquisition frees Ubisoft from the requirement of royalty payments for use of the Tom Clancy brand, which the company expects will help it save at least five million euros (roughly $7.87M) a year. Ubisoft did not disclose the price of the all-cash acquisition.

"The future of our industry lies in our capacity to create and develop brands that captivate consumers and that present myriad of opportunities for the full spectrum of entertainment, be it video games, books, movies or other media," said Ubisoft CEO Yves Guillemot.

"Capitalizing on the strong franchises that we've built over the past 10 years, we will take the Tom Clancy game brand to the next level of the global entertainment industry," he added.

Tom Clancy originally began working with video games when he co-founded Red Storm Entertainment in 1996, which developed and published the original Rainbow Six and Ghost Recon titles. The studio was later purchased by Ubisoft, and the Tom Clancy sphere of video games has since expanded to over 35 titles and expansions.