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Keywords buys video game art firm for US$9mln

Published: 07:42 20 Aug 2015 BST

Keywords buys video game art firm for US$9mln
Its clients include 343 Industries, which makes the Halo games franchise

Video games service provider Keywords Studios (LON:KWS) has continued its expansion with the acquisition of a US art provider.

Keywords is buying Liquid Development, which creates art assets for the video game industry such as characters, vehicles, landscapes and cityscapes, for US$9mln.

“The acquisition is in line with Keywords' strategy of growing both organically and by acquisition,” the company said.

Keywords will pay US$6.3mln in cash using its reserves, with just over 1mln shares being issued at 160.32p to satisfy the remaining balance.

Andrew Day, chief executive, said: “The acquisition of Liquid Development scale of our art significantly increases the services business line, giving us greater penetration of this large and strongly growing market.

“Bringing the two businesses together provides the group with the much needed art capacity and talent to help meet existing strong client demand and enables us to offer more services to more potential and existing clients."

Liquid is expected to be immediately earnings-enhancing, with the company forecast to post revenues of US$7.5mln and pre-tax profit of US$1.5mln in 2015.

Its clients include 343 Industries, which makes the Halo games franchise, Warner Bros, EA, Microsoft Game Studios and Zynga.

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