A video games company has become the latest London-listed company to be targeted by foreign buyers.
Keywords Studios said yesterday it would accept a £2bn offer from Swedish giant EQT.
A deal would see the Aim-listed company exit the London stock market amid a “feeding frenzy” for acquisitions.
Shares in Keywords, one of the largest companies on the London junior stock market, soared 55.2 per cent, or 812 pence, to 2,282 pence, after the announcement.
Keywords was founded in Ireland in 1998 and now has more than 70 studios worldwide and employs around 12,000 people.
Objective: Keywords Studios, founded in Ireland in 1998, provides services to video game developers, including Fortnite and Call of Duty.
The company offers services to video game developers, including Fortnite and Call of Duty.
The latest offer of 2,550 pence per share follows four approaches from EQT that were rejected by the board.
Keywords, which is based in Dublin, said it is in advanced talks with EQT and is “willing to recommend” the offer.
EQT has until June 15 to make a firm offer, which will then be put to a shareholder vote, or withdrawn.
Keywords said: “The board remains confident in the growth strategy of building the only truly global platform providing solutions to the video game and entertainment industries, both organically and through acquisitions, and EQT supports this strategy “.
Keywords is the latest London-listed company to be targeted by overseas buyers this year, with the value of bids from overseas bidders exceeding £60bn.
It comes after Royal Mail owner International Distributions Services accepted a £3.5bn bid from Czech billionaire Daniel Kretinsky in a move that shocked the City and Westminster.
Cybersecurity group Darktrace has backed a £4.2bn bid from US private equity firm Thoma Bravo.
And miner Anglo American has rejected two offers from Australian rival BHP, while Wood Group, Currys and Direct Line have rejected foreign bids.
Meanwhile, gambling group Flutter and travel agent Tui have left the exchange to list overseas.
In addition to the exodus, there is also concern about the lack of companies joining the London Stock Exchange through initial public offerings (IPOs).
The City was dealt a blow when Cambridge chipmaker Arm decided to list on Wall Street last year.
A City analyst warned the London market was facing “death by a thousand cuts”. Another has said it is the target of an acquisition “frenzy” as buyers pounce on undervalued companies.
