- The agreement will consist of an initial fee and an additional payment component.
- The Dublin-based group added that this is expected to be within its target valuation.
Keywords Studios has acquired Wushu Studios, a leading game development studio based in Liverpool.
The gaming services company said the deal consists of an upfront cash fee as well as a “deferred revenue component,” meaning the cost will depend on performance.
However, Keywords did not disclose the value of the acquisition but told shareholders it was funded from its existing revolving credit facility.
This comes ahead of the acquisition of Keywords by private equity giant EQT, which agreed to buy the company for £2.1bn.
Keywords Studios has revealed that it has acquired Wushu Studios, a leading game development studio based in Liverpool.
The Dublin-based group, which provides technical and creative services to many of the major video game makers including Microsoft and Activision Blizzard, added that this is expected to be within its target valuation.
Keywords The work of the studies includes producing trailers, voice-overs, mixing sound, working on visual effects and translating in-game texts into dozens of languages.
The sector benefited from the pandemic as lockdown restrictions caused people to spend more time indoors, prompting increased investment in the sector.
Bertrand Bodson, CEO of Keywords Studios, said: “The acquisition aligns with our strategy to develop our game development offering globally. We now have two studios in Liverpool, which is a key regional hub for talent in the UK.
Alan McDermott, founder of Wushu Studios, added: “Joining Keywords allows us to maintain our creative independence while also gaining access to a wealth of resources and expertise.”
Since listing on the AIM exchange in 2013, Keywords has expanded significantly through acquisitions and organic growth, increasing revenue from €16.4 million at the time to €780.4 million last year.
Last month, Keywords Studios agreed a £2.1bn takeover by Swedish private equity giant EQT.
The gaming services company accepted a £24.50-a-share offer from the Stockholm-based investment group, which bought Dechra Pharmaceuticals in January.
Keywords Studies Share fell 0.08 percent to 2,398 pence in early trading on Tuesday.