- Keywords has received an offer of £35.50 per share from private equity firm EQT
- EQT now has until 5 pm on June 15 to declare a concrete offer or withdraw
London-listed video games services company Keywords Studios has confirmed it is in talks over a potential £2.2bn acquisition by EQT Group.
The Irish company has received an offer of £35.50 per EQT share, having rejected four previous proposals from the Swedish private equity firm.
He said the latest offer, a premium of more than 70 per cent to Keywords’ closing share price on Friday, represents a “significant increase” on the initial approach and that he was “willing to recommend it” to shareholders.
Fantasy land: Keywords Studios has worked on famous franchises such as Fortnite, Assassin’s Creed, Pro Evolution Soccer and The Legend of Zelda (pictured).
Under the city’s procurement rules, EQT now has until 5 p.m. on June 15 to declare a concrete offer or withdraw, although the deadline could be extended.
Keywords study actions soared 62 per cent to £23.82 in early Monday afternoon, making them the biggest risers on the AIM All-Share index.
However, the group’s share price more than halved in the 18 months before the acquisition was announced due to concerns that artificial intelligence threatened its future.
HSBC UK analysts said “the market reaction to AI fears has been harsh” as Keywords has invested in automation and embraced AI in game testing, player support and tools. of translation.
Keywords provides technical and creative services to most of the world’s largest video game companies, including Microsoft, Ubisoft, Electronic Arts and Activision Blizzard.
When Keywords listed on the London Stock Exchange in 2013, it had 120 employees and a market capitalization of just £50 million, but it has since grown to more than 13 billion and around £1.9 billion respectively.
Its potential acquisition by EQT comes amid a renewed level of takeover activity involving London-listed companies, which are perceived as undervalued relative to their global peers.
In January, EQT bought veterinary products maker Dechra Pharmaceuticals in a £4.5bn leveraged buyout deal.
Just last month, cybersecurity specialist Darktrace, satellite software company IQGeo Group and music royalty investor Hipgnosis Songs Fund agreed to be bought by US private equity companies.
Mining giant Anglo American also received and rejected two proposals (the latter valued at £34 billion) from its much larger Australian rival, BHP Group.
