Activision has announced that it has acquired the video game developer Budcat Creations. Based in Iowa City, Iowa, Budcat is best known for their Nintendo Wii and DS titles. The top of the list is Guitar Hero III: Legends of Rock and Aerosmith, and the just released Guitar Hero World Tour.  The developer is currently in development on a new  game in the Guitar Hero family.

Under the terms of the acquisition agreement, Budcat Creations has become a wholly owned subsidiary of Activision Publishing and the company’s management team has signed multi-year employment contracts with Activision Publishing. The studio will continue to be based in Iowa City, Iowa. Financial terms of the agreement were not available.