REG - Keywords Studios PLC - Acquisition

Keywords StudiosAnnouncement

18/12/2023 07:00

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RNS Number : 0687X  Keywords Studios PLC  18 December 2023

18 December 2023

 

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

 

 Acquisition of The Multiplayer Group Ltd ("MPG") from Improbable Worlds
Limited ("Improbable")

 

Leading multiplayer focused studio enhances and scales Keywords' 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 that it has acquired The Multiplayer
Group Ltd, a multiplayer focused game development studio headquartered in
Nottingham, UK, for £76.5 million. The Group has acquired the business from
Improbable, the metaverse company, which has owned MPG since 2019.

MPG is one of the largest and most respected developers of AAA multiplayer
games and technology for some of the world's best-known studios and publishers
including Activision Blizzard, Bethesda, Zenimax, Epic and 2K. MPG provides a
range of services including both co-development and full game development to a
global client base, and also has functions working on data science, new
technology and AI. The business has grown rapidly since its foundation in 2018
and now employs over 360 staff globally.

MPG's leadership team comprising Andy Norman, Rocco Loscalzo, Vaughan O'Brien
and Roger Cheung will continue to lead the business post-acquisition and will
participate in a management incentive plan based on ambitious growth targets
over the next two years.

The consideration was paid in cash and primarily funded from the Group's
existing revolving credit facility. The business has a strong pipeline of work
and is expected to deliver double-digit percentage revenue growth in 2024,
with margins in line with those of Keywords' Create division. The transaction
is expected to be EPS accretive in its first full year post acquisition and
fall within the Group's targeted valuation range of five to seven times
EBITDA.

Bertrand Bodson, CEO of Keywords Studios, commented: "We are thrilled to
welcome the MPG team to Keywords. MPG is a business that we have long admired
for its high-quality work, blue-chip client base, deep experience in
developing AAA multiplayer games and its use of technology and data analytics.
This is another important step in building out our platform and expanding our
offering to encompass specialised multiplayer game development at scale, which
is increasingly in demand for live services. We believe that MPG complements
our existing high-quality UK and global Create studios and are excited to
bring them into the Group. We look forward to working with Andy and the wider
talented MPG team over the coming years to continue to drive growth in the
business."

Herman Narula, Founder and CEO of Improbable, said: "We are delighted to see
MPG embark on its next chapter with Keywords, who we've always seen as a
like-minded business partner. Nurturing and fostering ventures is at the heart
of our philosophy and allows us to realize lasting value, and we are confident
that MPG will continue to grow within the Keywords' environment."

Andy Norman, CEO of MPG, commented: "MPG has found success in the multiplayer
space through passion, expertise, and customer driven collaboration. We have
seen strong growth over the past few years, working on some of the most
complex and successful games in the market, supported by our dedication to a
sustainable, people-first culture. With Keywords, we believe we can continue
to lead and grow multiplayer innovation, bringing the MPG ethos to more
customers and games. We look forward to working closely with Keywords and
driving growth both in MPG and across the enlarged Keywords' group".

This Announcement contains inside information for the purposes of the market
abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

 

For further information, please contact:

 Investor Contacts:                                                         Media Contacts:
 Keywords Studios                                                           MHP Group

 Giles Blackham                                                             Katie Hunt / Eleni Menikou / Charles Hirst

 Director of Investor Relations                                             +44 7884 494 112

 +44 7714 134 681                                                           keywords@mhpgroup.com (mailto:keywords@mhpgroup.com)

 gblackham@keywordsstudios.com (mailto:gblackham@keywordsstudios.com)
 Deutsche Numis

 Nominated Adviser & Broker

 Stuart Skinner / Will Baunton

 +44 20 7260 1000

 

 

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

Keywords Studios is an international provider of creative and
technology-enabled solutions to the global 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 service lines 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,
TakeTwo, Tencent and Ubisoft. Recent titles worked on include Starfield,
Diablo IV, Hogwarts Legacy, Elden Ring, Fortnite, Valorant, League of Legends,
Clash Royale and Doom Eternal. Keywords Studios is listed on AIM, the London
Stock Exchange regulated market (KWS.L).

 

About The Multiplayer Group (www.themultiplayergroup.com
(https://themultiplayergroup.com/) )

At The Multiplayer Group (MPG), we specialise in creating the highest standard
of mind-blowing multiplayer experiences for our partners, through Co-Dev and
Full-Dev projects. Right now, we're involved in the biggest shooters, the
highest profile AAAs, and the trickiest full physics-based multiplayer action
ever produced. We are a team of 360 across 30 countries, including the UK,
Canada and Spain. Our aims are to be instrumental in the best multiplayer
developments around the globe, to help our partners succeed and to add value
to these projects that only experience like ours can.

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