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.
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."