- The keywords revealed that it received a new offer of £24.50 per EQT share.
- EQT now has until 5:00 p.m. on July 3 to present a concrete proposal
Keywords Studios’ board is set to ask investors to back a new $2.5bn (£1.96bn) private equity takeover approach.
The gaming services company revealed it has received a new offer of £24.50 per share from Swedish private equity giant EQT, an increase of 20p on a previous proposal made on Wednesday.
After consulting with financial advisers, the Dublin-based group said it would “be willing to recommend” the deal to shareholders if EQT declares its intention to make an official offer.
Offer: Video games services company Keywords Studios has received a new offer of £24.50 per share from Swedish private equity giant EQT
Under city procurement rules, EQT now has until 5 p.m. on July 3 to submit a concrete proposal or withdraw.
Keywords first announced it was holding acquisition talks with EQT in May and had rejected four unsolicited offers from the owner of Dechra Pharmaceuticals.
The AIM-listed firm provides technical and creative services to many of the world’s largest video game makers, including Microsoft, Ubisoft, Electronic Arts and Activision Blizzard.
These include the production of trailers, voice-overs, artwork, social media posts, music composition, and translation of in-game texts into dozens of languages.
The Covid-19 pandemic gave it a big boost, as tough restrictions imposed around the world caused people to spend more time indoors.
The group has expanded further through an extensive series of acquisitions, purchasing companies such as Heavy Iron Studios, Smoking Gun Interactive and Forgotten Empires.
However, Keywords study actions have fallen significantly from their peak of over £33 in September 2021 due to concerns that artificial intelligence threatens the video games industry.
They were up 5.7 per cent, or 124 pence, at £23.02 on Friday morning.
Keywords also announced on Friday that its annual results would be weighted toward the second half of this year due to “slower content creation trends that are currently holding back industry spending.”
For the final six months of 2024, the firm anticipates organic growth of around 10 percent, supported by strong spending from large clients and increased content production across Hollywood.
Its potential acquisition comes amid a large volume of takeover activity involving London-listed companies, which are perceived as undervalued compared to their global peers.
Royal Mail’s parent company, International Distributions Services, accepted a £3.6bn bid from Daniel Kretinsky, a Czech billionaire with major stakes in Sainsbury’s, Foot Locker and West Ham United.
Packaging company DS Smith, cybersecurity specialist Darktrace and telecoms testing group Spirent Communications have also accepted takeover bids in recent months.
