Acquisition
13/08/2024 07:00
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RNS Number : 1537A Keywords Studios PLC 13 August 2024
13 August 2024
Keywords Studios plc ("Keywords Studios", "Keywords", the "Group")
Acquisition of Wushu Studios Limited ("Wushu")
Leading UK-based game development studio adds further scale to Create Division
Keywords Studios, the international provider of creative and
technology-enabled solutions to the global video games and entertainment
industries, is delighted to announce the acquisition of Wushu Studios Limited,
a leading game development studio headquartered in Liverpool, United Kingdom.
Wushu was founded in 2017, initially as an original IP studio, before
transitioning to a work-for-hire model, providing a range of services to
high-profile publishers and developers on co-development and full development
projects as well as porting & remaster work and live support services.
Wushu employs c.160 people, with multiple project teams working closely with
clients to develop a range of high-quality games. Recent titles Wushu has
worked on include Fall Guys, State of Decay, Forza Horizon 5 and Baldur's Gate
3.
Wushu has grown well despite current market turbulence, with adjusted revenues
of approximately £12.5m and an adjusted EBITDA margin in line with that of
the Group expected in the year ending 31 August 2024. Wushu's founder and
majority owner Alan McDermott and his management team will remain with the
business post-acquisition as they look to continue Wushu's growth which is
underpinned by a strong pipeline of high-quality projects.
The consideration comprises an upfront and earn-out component and is expected
to fall within the Group's targeted valuation range. The upfront consideration
was paid in cash and funded from the Group's existing revolving credit
facility.
Bertrand Bodson, CEO of Keywords Studios, commented on the acquisition: "We
are thrilled to welcome Wushu to Keywords. The acquisition aligns with our
strategy to build out our game development offer globally. We now have two
studios in Liverpool which is a key regional hub for talent in the UK. Wushu's
highly skilled team, strong relationships and opportunities for growth will be
important assets that complement our existing Create studios as we continue to
enhance our offering to our global client base. We look forward to working
with Alan and the talented team over the coming years to support and drive
growth in the business."
Alan McDermott, Founder of Wushu Studios, further commented: "This is an
exciting new chapter for Wushu. Joining Keywords allows us to maintain our
creative independence while gaining access to a wealth of resources and
expertise. It allows us to further enhance the services we offer our long-term
clients with an extensive resource network and broad skillsets. Keywords
shares our ambitions for continued growth, and their investment in Wushu will
help us continue to remain faithful to our people-first approach to
development. We look forward to collaborating with the broader Keywords
network and taking on ever more ambitious projects in the future."
For further information, please contact:
Keywords Studios Deutsche Numis
Giles Blackham Nomad & Joint Corporate Broker
Director of Investor Relations Stuart Skinner / Will Baunton
+44 7714 134 681 +44 20 7260 1000
gblackham@keywordsstudios.com (mailto:gblackham@keywordsstudios.com)
MHP Group Barclays
Financial Communications Joint Corporate Broker
Katie Hunt / Eleni Menikou / Charles Hirst Tom Macdonald / Stuart Jempson
+44 7884 494 112 / +44 20 3128 8100 +44 20 7029 8000
keywords@mhpgroup.com (mailto:keywords@mhpgroup.com)
About Keywords Studios (www.keywordsstudios.com
(https://protect.checkpoint.com/v2/___http:/www.keywordsstudios.com/___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpjMDA2Nzc2YzljNWFhYmE4ZTcyZTEzOWU1NTA1N2JkMTo2OjRlN2I6MmJkOGY0MjM5NjI1YjY5ZDVhNzQwZjUyNGE3NTdlOWNmMjc2NjI3ZmY0MjY2YTcwOTdhZWZkZDgyNjUyYTZhMzpwOkY6Tg)
)
Keywords Studios is a global provider of creative and technology-enabled
solutions to the video games and entertainment industries. Established in
1998, and now with over 70 facilities in 26 countries strategically located in
Asia, Australia, the Americas, and Europe, it provides services across the
entire content development life cycle through its Create, Globalize and Engage
Divisions to a large blue-chip client base across the globe.
Keywords Studios has a strong market position, providing services to 24 of the
top 25 most prominent games companies and contributing to over 70% of the 2023
Game Awards winners. Across the games and entertainment industry, clients
include Activision Blizzard, Bandai Namco, Bethesda, Electronic Arts, Epic
Games, Konami, Microsoft, Netflix, Riot Games, Square Enix, Supercell,
Take-Two, Tencent and Ubisoft. Recent titles worked on include Starfield,
Baldur's Gate 3, Diablo IV, Hogwarts Legacy, Elden Ring, Fortnite, Valorant,
League of Legends and Clash Royale. Keywords Studios is listed on AIM, the
London Stock Exchange regulated market (KWS.L).
About Wushu Studios (https://wushustudios.com/
(https://protect.checkpoint.com/v2/___https:/wushustudios.com/___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpjMDA2Nzc2YzljNWFhYmE4ZTcyZTEzOWU1NTA1N2JkMTo2OmJjYzE6YWEwOGJiYTVkMGE5ZmI1ODViYTVmYjFiZTg5MzMwY2ZhMTEwOGZmOWUxNzk4ZGVjYzFlY2IyZDhiMmZjMWU4NTpwOkY6Tg)
)
At Wushu Studios, our passion lies in the art of game development, but our
success is entirely attributable to incredible people. As an independent game
development studio, our journey is driven by the thrill of creating
cutting-edge games and delivering unparalleled experiences to players
worldwide. Everything we do is fuelled by innovation, creativity, and, most
importantly, collaboration. Our team is a diverse group of world-class,
creative, and dedicated developers, and they are the heartbeat of our studio.
Our collaborative efforts have given rise to a spectrum of games, from
enchanting role-playing games to blockbuster AAA titles. We pride ourselves on
the long-standing relationships we've developed with global publishers and
incredible studios.
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