20th Jan 2015 09:48
LONDON (Alliance News) - Keywords Studios PLC Tuesday said it has paid the sellers of Binari Sonori SRL a deferred consideration of EUR300,000 in shares, meaning the earn-out period was closed a year earlier than expected under the original acquisition deal and the deferred consideration was much lower than it could have been.
Keywords Studios bought the provider of outsourced voice-over and translation services for the video games industry back in May last year for up to EUR13.0 million from its founders. It agreed to pay EUR6.0 million in cash and EUR3.0 million in Keywords shares initially, and said at the time that the deferred consideration would be no more than EUR4.0 million, calculated on Binari's profit before interest and tax in the two years to end-2015.
It said Tuesday it has now agreed to close the deal with a deferred payment of EUR300,000 by issuing Binari's founders with 158,250 new Keywords shares at 145.47 pence each.
"By drawing the earn out arrangements to an early close, we will be able to fully integrate the businesses more rapidly and provide the conditions for the selling shareholders to play fuller roles within the management of the group," Keywords Studios Chief Executive Andrew Day said in a statement.
"We are pleased with the acquisition of Binari Sonori. Despite some market challenges in 2014, the company has performed well and our clients have welcomed the combination of the businesses. We are particularly pleased with the way in which the business of Binari Sonori and Keywords have worked together over the period of seven months since the acquisition to achieve certain synergies," he added.
Keywords said it was expecting a more buoyant games console market in 2015, spurred on by buoyant sales of the Xbox One and Playstation4 over the holiday period, "a trend which will benefit all of the companies within the Group, including Binari Sonori".
Keywords Studios shares were untraded Tuesday. The stock last traded at 144.00 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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