REG - Keywords Studios PLC - Acquisition

Keywords StudiosAnnouncement

21/09/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220921:nRSU1133Aa&default-theme=true

RNS Number : 1133A  Keywords Studios PLC  21 September 2022

21 September 2022

 

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

 

Acquisition of Smoking Gun Interactive Inc.

 

Smoking Gun's game development expertise and live operations capabilities will
enhance Keywords' client offering

 

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 Smoking Gun Interactive Inc. ("Smoking
Gun").   This acquisition would further the Group's strategy to be the
partner of choice for technical and creative services for the global video
games industry.

 

Smoking Gun is a 68 person video game development studio based in Vancouver,
Canada.  Industry veterans John Johnson, Drew Dunlop and Angie Pytlewski set
up Smoking Gun in 2007 and will continue to manage the studio as part of the
Keywords group.  Smoking Gun has a long track record in developing, enhancing
and supporting highly rated, cross platform games for mobile, PC and console
devices and works for publishers including Microsoft and Netflix Games.  The
talented Smoking Gun team has particular expertise in the casual, real time
strategy (RTS) and action genres and works on some of the industry's
best-known classic games including Microsoft Solitaire Collection and
Microsoft Mahjong.  The studio also produced the highly successful RTS game
Age of Empires: Castle Siege, part of the classic Age of Empires franchise.
 

 

Under the terms of the acquisition, Keywords will pay a maximum amount
of CAD$40.0m, comprised of initial cash consideration of CAD$16.0m, the
equivalent of CAD$4.0m in new ordinary shares to be issued within 30 days of
completion, and up to CAD$20.0m, 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
lock in periods and orderly market provisions for a further year.  Smoking
Gun is expected to grow strongly over the next 12 months and deliver EBITDA of
around CAD$6m.

 

Bertrand Bodson, CEO of Keywords Studios commented:

 

"We are delighted to welcome John, Drew, Angie and the highly skilled Smoking
Gun team to Keywords.  Smoking Gun has a 15 year history of high quality game
development and the studio's expertise in casual and RTS development for
mobile games combined with its experience in live operations games support are
valuable extensions of our client offering.  The acquisition builds on our
presence in the Vancouver area, which is a rich source of talent and one of
North America's video gaming hubs.  We are really looking forward to working
with the Smoking Gun team and supporting the studio's continuing growth as
part of the Group."

 

John Johnson, Drew Dunlop and Angie Pytlewski of Smoking Gun, commented:

 

"We are very excited to be joining Keywords.  Keywords is an industry leader
with an unrivalled range of high quality services which will help accelerate
Smoking Gun's growth and provide opportunities to build, deliver and support
more award winning titles.  We are really looking forward to playing our part
in helping to deliver on the strategy of the wider Keywords group by bringing
Smoking Gun's expertise and experience to the Group's client offering."

 

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

 Giles Blackham, Investor Relations

 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
26 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 Smoking Gun (www.smokingguninc.com (http://www.smokingguninc.com) )

Smoking Gun is an industry-leading video game development studio founded in
2007 by award-winning industry veterans.  Smoking Gun partners with renowned
brands to develop a wide range of world-class, immersive titles and
interactive experiences that resonate with strategy gamers worldwide and
entertain millions of casual players every day.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQUAAVRUSUKURR