10th Oct 2014 07:47
LONDON (Alliance News) - Keywords Studios PLC said Friday it has acquired India-based outsourced art services company Lakshya Digital Pvt Ltd for a total of USD4.0 million.
Keywords provides technical services for the video games industry, and said that the acquisition of Lakshya gives it an entry point into a fast-growing market, as the demand for art assets like characters, vehicles, landscapes grows with the proliferation of gaming content on consoles, social media, smart-phones and other devices.
The company said it expects the acquisition to add to earnings in its first full year of ownership.
Keywords will pay in two tranches. It has acquired 91% of Lakshya for USD3.0 million in cash, the remainder will be acquired for USD1.0 million in October next year, of which up to USD400,000 will be used to subscribe for shares in Keywords. Two of the sellers of Lakshya will be granted options over 450,000 shares in Keywords.
Lakshya posted revenues of INR249 million in the year to end-March, with net assets of INR78 million.
"Amalgamating Keywords and Lakshya business development resources will further strengthen the breadth of our offering, while ensuring that we take full advantage of opportunities to introduce all clients to the full range of services available from Keywords studios around the world," said Chief Executive Andrew Day in a statement.
Shares in Keywords are untraded Friday; it last closed at 140.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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