Keywords Studios PLC (AIM:KWS, OTC:KYYWF) has agreed to an all-cash bid from a consortium led by Scandinavian private equity group EQT that values the video game ancillaries specialist at £2.1 billion or £2.2 billion including debt.
The offer, worth 2,450p per share, was flagged last week and follows an original approach worth 2,250p in May.
EQT's consortium includes two state-backed investment groups, Canadian-owned CPP and Rosa, a subsidiary of Singapore’s investment fund Temasek.
The consortium said this latest offer was final and would not be raised unless a third party makes a rival bid.
In a statement, EQT said it sees scope for Keywords to accelerate its growth and evolve into a global full-scale integrated gaming services provider.
Though confident in its strategy, Keywords said it was “mindful of the near-term challenges in the broader video games and entertainment industries and other longer-term uncertainties".
The group, which supplies finishing services such as artwork and dubbing, added the offer represents a significant increase on the original proposal and is a 67% premium to the share price in May when the initial approach was made public.
Don Robert, Keywords chair, added: “On balance, the board believes that this offer represents a good opportunity for Keywords Studios shareholders to realise value for their investment in cash upfront at a significant premium to the undisturbed share price.”
Jean Salata, chairman of EQT Asia, added: “As a private company under EQT's ownership, Keywords Studios will be well positioned to make the long-term investments required for the transition to next-gen video gaming and for global expansion.”