REG - Keywords Studios PLC - Acquisition

Keywords StudiosAnnouncement

08/06/2022 07:00

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RNS Number : 1213O  Keywords Studios PLC  08 June 2022

8 June 2022

 

Keywords Studios plc ("Keywords Studios", "Keywords", the "Group")

 

     Acquisition of Forgotten Empires, LLC ("Forgotten Empires")

 

Adds Real Time Strategy game expertise to Keywords' Game Development Service
Line

 

Keywords Studios, the international technical and creative services provider
to the global video games industry, today announces that it has entered into a
conditional agreement to acquire Forgotten Empires, LLC, a full service game
development studio, for a total consideration of up to US$32.5m. The
acquisition will further the Group's strategy to become the 'go to' technical
and creative services platform for the global video games industry.

 

Founded in 2013 by studio head Ryan Shepherd, who will continue leading
Forgotten Empires within Keywords Studios, the studio specialises in the
development of real time strategy games ("RTS") including Microsoft's classic
franchise, Age of Empires.  Headquartered in Ohio in the US, Forgotten
Empires' talented team of 53 game developers are passionate individuals from
around the globe who are also avid RTS fans.  Forgotten Empires has worked on
many games including all of the Age of Empires Definitive Editions, Age of
Mythology: Extended Edition and Age of Empires IV and has worked alongside
Keywords' other game development studios Tantalus, Wicked Witch and Climax
Studios on certain of those projects.

 

Forgotten Empires generated revenue of US$7.2m in 2021 and is expected to grow
strongly in the current year.  Under the terms of the acquisition, which is
subject to certain closing conditions, Keywords Studios will pay a maximum
amount of US$32.5m, comprised of initial cash consideration of US$15.75m, the
equivalent of US$3.75m in new ordinary shares to be issued one year post
completion (US$2m of which is contingent on targets being met in the first six
months from completion), and up to US$13m, in a mix of cash and new ordinary
shares based on growth targets being met over the year following completion.
The new ordinary shares in Keywords Studios to be issued are subject to
one-year orderly market provisions.

 

Bertrand Bodson, CEO of Keywords Studios commented:

"We are very excited to welcome Ryan and the Forgotten Empires team to
Keywords.  The studio has been instrumental in helping to create, design and
grow the hugely successful and expanding Age of Empires series.  Forgotten
Empires' talented team brings experience and expertise particularly in real
time strategy games and will be a great addition to our client offering and
game development capability.  Forgotten Empires' strong track record of
attracting and retaining talent globally is a testament to Ryan, his team and
the high quality of the work that the studio produces.  We look forward to
supporting Forgotten Empires' continuing growth as part of the Group."

 

Ryan Shepherd, further commented:

"We are delighted to join Keywords Studios, an industry leading, fast growing
business with a global footprint. We are really excited that they share our
ambition and will provide the support to enable and underpin our continuing
growth.  Having worked alongside some of Keywords' development studios we
know the cultural fit will work well and we look forward to working more
closely together with the wider Keywords' group to drive the combined business
forward."

 

For further information, please contact:

 Keywords Studios (www.keywordsstudios.com (http://www.keywordsstudios.com/) )   +353 190 22 730

 Bertrand Bodson, Chief Executive Officer

 Jon Hauck, Chief Financial Officer

 Numis Securities                                                                +44 20 7260 1000

 Stuart Skinner/Kevin Cruickshank/Will Baunton

 MHP Communications (Financial PR)                                               +44 20 3128 8193

 Katie Hunt/Eleni Menikou/Charles Hirst                                          keywords@mhpc.com (mailto:keywords@mhpc.com)

 

About Keywords Studios (www.keywordsstudios.com
(http://www.keywordsstudios.com/) )

Keywords Studios is an international technical services provider to the global
video games industry. Established in 1998, and now with over 70 facilities in
24 countries strategically located in Asia, Australia, the Americas and
Europe, it provides integrated art creation, marketing services, game
development, testing, localization, audio and player support services across
more than 50 languages and 16 games platforms to a blue-chip client base of
over 950 clients across the globe.

Keywords Studios has a strong market position, providing services to 23 of the
top 25 most prominent games companies. 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, TakeTwo, Tencent and Ubisoft. Recent titles worked on include
Anthem, Star Wars Jedi: Fallen Order, Valorant, League of Legends, Fortnite,
Clash Royale and Doom Eternal. Keywords Studios is listed on AIM, the London
Stock Exchange regulated market (KWS.L).

 

About Forgotten Empires (www.forgottenempires.net
(http://www.forgottenempires.net) )

Forgotten Empires is an independent full-service game developer focused on
Windows PC games. Headquartered in the U.S., the Forgotten Empires team
consists of 53 passionate individuals from around the globe, each of whom
brings a unique skill set and perspective to the studio. The studio
specialises in software engineering, artwork, gameplay, graphic design and QA
services.

 

 

 

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