20th Aug 2018 09:27
LONDON (Alliance News) - Keywords Studios PLC said Monday it has expanded its video game development business with the GBP26 million acquisition of Studio Gobo Ltd and Electric Square Ltd.
The company, which provides technical services to the video games industry, has acquired Studio Gobo and Electric Square, together Gobo, from the founders and other members of the management team. Gobo provides game development services to video game developers and publishers from three studios located in Brighton and Hove, UK.
For the year ended July 31, Gobo anticipates to record underlying earnings before interest, taxes, depreciation and amortisation of around GBP3.6 million and revenue of GBP11.6 million.
The acquisition consideration comprises an initial payment of GBP10.5 million in cash and 254,529 new ordinary shares, worth about GBP4.7 million. The remaining consideration of GBP11 million is payable in a mix of cash and shares, subject to the achievement of certain financial targets.
Shares in Keywords were trading 4.4% higher at 1,848.00 pence each on Monday morning.
"The acquisition further expands the number of the world's leading game companies who use our development services. By significantly enhancing our game development services in both scale and expertise, these studios together with recently acquired Snowed In, Sperasoft, d3t and GameSim help position Keywords as a go to game development partner and give us ever greater visibility of games in the pipeline, at the outset of their development," said Keywords Studios Chief Executive Andrew Day.
The acquisition is expected to be earnings enhancing in the first year for Keywords, it said.
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