Shanghai-based game developer UltiZen Games Limited has announced that it has acquired the Japanese game developer Red Entertainment Corporation Limited, but no financial details surrounding the transaction are currently available.

Since its founding 27 years ago, Red has reportedly developed many projects, including the "Sakura Wars" series, "Tengai Makyou" series, and "Scared Rider Xechs".

After the acquisition, UltiZen and Red will work closely to co-develop games for PCs and smartphones. Meanwhile, Red will continue to develop its new game intellectual properties, while sharing its expertise with UltiZen and improving UltiZen's game development capability.

Lan Haiwen, chief executive officer of UltiZen, told local media that the future of the gaming industry depends on the innovation capability of developers. Outstanding innovations can captivate more users and help expand their game brands into other platforms such as smartphones.

Yasuaki Nagoshi, chief executive officer of Red, said that it is the quality and innovation of their talents that made Red one of the most well-known studios in Japan. The sharing of development and creative expertise between UltiZen and Red will position the two companies at the head of the entertainment industry in rapid evolution.

So far, the two parties have already decided to co-develop five new products in 2011.

Founded in 2005, UltiZen is one of China's largest game development and outsourcing companies. UltiZen is also the creator of the U-Pal web game platform for the Chinese market, as well as the leading mobile game developer. UltiZen currently has 400 employees and maintains studios in Shanghai, Beijing, and Suzhou.