Chinese selfie app Meitu is buying a 31 per cent stake in game publishing company Dreamscape Horizon for HK$2.7bn (£262.8m/$342.7m) as it looks to diversify beyond beauty-focused products.

Dreamscape Horizon is a subsidiary of Leyou Technologies, a Hong Kong-listed video game holding company. As a result of the transaction, Meitu will pay Dream Beyond Holding with 991.4m Meitu shares at HK$2.71 each.

Dreamscape Horizon owns 97 per cent of Canadian games studio Digital Extremes, which makes video games for personal computers and consoles. The company is best known for developing free-to-play cooperative third-person shooter Warframe, as well as co-creating Epic Games’ Unreal series of games and developing Star Trek, the poorly-received game made to accompany the Star Trek Into Darkness film.

“The collaboration with Leyou is not only focused on mainland China but also the global market,” a Meitu spokesperson told TechCrunch. “Mainland China currently accounts for the majority of Meitu’s earnings. The acquisition will broaden our business scope and diversify the geographic streams of our income.”