Sumo Digital was founded in 2003 by Carl Cavers, Paul Porter, Darren Mills and James North-Hearn, four members of the former management team of Infogrames Studios, after that company had been closed down.

[4] In November 2014, Sumo Digital's officers completed a management buyout from Foundation 9; in this transaction, Sumo Digital's management was backed by NorthEdge Capital and Foundation 9 was advised by GP Bullhound.

[8][9] In January 2018, Sumo Digital acquired CPP Newcastle, the Gateshead-based studio of CCP Games.

[13] In October 2019, Sumo North West was opened in Warrington, England; led by Evolution Studios co-founder Scott Kirkland.

[15] Sumo Digital announced a partnership with the blockchain-company Dapper Labs in October 2020.