Keywords Studios PLC (AIM:KWS, OTC:KYYWF) has confirmed the receipt of a bid approach from EQT Group worth around £2.2bn.
Dublin-based games services specialist Keywords said it was one of a series of potential deals tabled by the private equity firm, but this one being at the value the "board would be minded to recommend".
EQT, which has around £200 billion under management, has until the close of business on June 15 to table a formal offer.
If the acquisition goes ahead, Keywords investors would receive £22.50 a share - a 53% premium to Friday's closing price - plus they'd be entitled to the final dividend payment.
Since hitting a high of more than £33 in September 2021, the shares have almost halved in value amid worries that AI may be used to carry many of the games industry tasks outsourced to the company by customers such as Activision Blizzard and Tencent. In the last year, the share price has tumbled 36%.
In a statement to the stock exchange Keywords: "The board remains confident in the company's growth strategy of building the only truly global platform providing solutions to the video games and entertainment industries, both organically and through acquisitions, and EQT is supportive of this strategy.
The company employs 13,000 people in 26 countries and has grown from a £50 million market capitalisation when it debuted on AIM in 2023.