Proactive Investors - Run By Investors For Investors

Keywords Studios makes move into outsourced software engineering with GameSim acquisition

GameSim generated US$4.1mln of revenue last year and its client list includes Electronic Arts, Zynga, and US Department of Defense.
video games controller, Microsoft Xbox One
It is Keywords first move into the software engineering market.

Acquisitive Keywords Studios PLC (LON:KWS) has today unveiled another new deal, picking up GameSim Inc which becomes the group’s first unit in the outsourced engineering business.

The company has thus far been specialising in outsourced video game localisation, art and sound, as well as providing live support services for gamers.

Keywords highlights that the addition of GameSim, which works on both video games and other virtual simulation applications, is in line with its strategy which aims to extend the group’s client base market penetration or service lines.

WATCH: GameSim acquisition takes Keywords into new line of business

GameSim is based in Orlando, Florida, and comprises more than 30 software engineers and artists.

The business has long running co-development projects as well as short turnaround engagements for their clients, which include EA, Zynga, and United States Department of Defense projects.

Keywords highlighted that GameSim had US$4.1mln of revenue in 2016.

The AIM quoted consolidator is to pay a total of US$4.76mln for GameSim, with US$3.2mln to be paid in cash, from existing resources, and the remainder covered by the issue of new shares.

It expects to grow further in the software engineering market, both organically and via further acquisitions.

The acquisition of GameSim is an entry point into outsourced software engineering services and is highly complementary to our existing essential services to game developers and publishers around the world,” said Andrew Day, Keywords Studios chief executive.

“Our intention is to use this as a platform from which to build a market leading engineering capability and we continue to review a number of compelling acquisition opportunities in this specialist and large, yet fragmented market.”

He added: “The market for game software development is growing with the increase in-game content, as games on consoles, social media, PCs, tablets and smart phones get bigger and richer in their definition and as games continue to move from a product to a services model requiring continuous content development, and as games developers and publishers outsource a greater proportion of this activity.

"We look forward to welcoming GameSim's highly talented teams to the fast growing Keywords group and to continuing to build upon its strong brand, leveraging Keywords' unparalleled geographic footprint, client relationships and financial strength to support its growth."

GameSim founder Andrew Tosh, meanwhile, said: “It is exciting for GameSim to enter a new chapter as Keywords' first engineering studio.

“GameSim will take advantage of synergies with other Keywords studios to better service our customers in the video gaming, military simulation & training, and geospatial visualisation industries."

View full KWS profile View Profile

Keywords Studios PLC Timeline

Related Articles

Mobile and tablet
September 07 2018
Ethernity specialises in technology that helps data traffic move efficiently in huge quantities
The Internet of Things
September 04 2018
"We have seen double-digit revenue growth, improved gross margins from H2 2017 and our cost optimisation plan is well underway," said Yosi Fait, Telit's CEO
December 05 2018
Markets for both antennas and water systems are set to grow strongly over the coming years

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use