UK mobile games maker Player X is buying Madrid-based mobile games publisher Gaelco Móviles for an undisclosed cash amount - its first acquisition and part of a European expansion plan.

At the same time, it’s separating out its production and publishing operations in to two new divisions - Studio X and Player X Distribution. Joining the latter unit on game aggregation and portals, Gaelco Móviles is mostly strong in the Mediterranean, has carrier tie-ups with Telefonica (NYSE: TEF), Vodafone (NYSE: VOD), TNM, Bouygues and Wind, and is responsible for titles like Mini Morris Fun Car (after the jump). Player X CEO Tony Pearce said it’s the first of a “raft of significant strategic moves” that are coming.

• German-Based Xing Buys Neurona, Builds Spanish Business Networking Beachhead