Like Candy Labs, Fracture will be based in Brighton, and will focus on developing compelling RPG titles for mobile.
Knowles-Lee and Minson have reunited with a handful of their former colleagues, and will take over the running of World of Warriors, which was previously under the control of Candy Labs.
Fracture made the announcement through GamesIndustry.biz, with the developer explaining the maturity of the mobile market means there's never been a better time to create "complex, deeper and longer-lasting experiences on mobile."
"The core gaming market on mobile is ready for a new wave of titles with higher quality, innovative mechanics and fresh settings. Fracture wants to be at the center of this nascent market," added the developer.