In a momentous transaction, Gastronaut Studios - the top-selling video games maker - has been acquired by the bigwig of casual games - the Seattle-based PopCap! The acquisition, the financial terms of which remained undisclosed, will help PopCap spread out its existence in Xbox Live and Xbox 360 markets.

A reputed name in the video games arena, Gastronaut is the creator of quite a few hit titles for the Xbox LIVE Arcade service, and is best recognized for its best-seller title 'Small Arms,' which is one of the runaway successes on XBLA.

On the other, PopCap is perhaps the only casual games developer with foremost market share across all chief sales channels - which comprise retail stores, Web portals, mobile operators and developers, and game device manufacturers. PopCap's games are played on a wide range of platforms - popular game consoles, desktop computers, mobile devices, the web, and in-flight entertainment systems.

Under the terms of the acquisition agreement, the founders of Gastronaut would be retaining private rights to their original game properties - 'Small Arms' and their forthcoming action puzzle title 'Gel'; even though PopCap will get the exclusive authorization to Gastronaut's tools and technologies. PopCap has also acquired Gastronaut's assets and employees, who will join PopCap's development panel.

David Roberts, PopCap CEO said that the company's acquisition of Gastronaut has "significantly increased its development capabilities and creative firepower."