South Korea’s Krafton Inc., the label behind battle royale game PUBG, is set to acquire U.S. game developer Unknown Worlds Entertainment for maximum $750 million in its first major acquisition since it went public in August.

Krafton on Friday disclosed that it will pay $500 million for a full stake in Subnautica developer Unknown Worlds with the option of offering an additional $250 million in an earn-out provision depending on the U.S. studio’s achievement after merger.

Unknown Worlds – a game developer founded in 2001 – is known for unique creativity-based PC and console games such as Half-Life Mod, Natural Selection series, and Subnautica.

Krafton is looking to enhance its game portfolio beyond mainstay Battlegrounds.

In June, the company acquired mobile game developer Dreamotion to place total five studios under its arm.

Unknown Worlds will be Krafton’s sixth studio responsible for PC and console games. Unknown Worlds management and internal structure will remain unchanged.

Kim Chang-han, chief executive of Krafton, said that it will move forward together with the goal of creating unique experience for global gamers.

Kospi-trading Krafton shares were 2 percent higher at 479,000 won in early Monday session.

By Lim Young-shin and Lee Eun-joo

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