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Keywords Studios buys video game trailers specialist for £5.2mln

Founded in 2013 and now with 40 staff between London and Montréal, Fire Without Smoke works with major game publishers such as Sony, Square Enix, Riot Games, Deep Silver, Sega, Capcom and Ubisoft
Young lad playing computer games
"We are delighted to welcome the talented and passionate teams of Fire Without Smoke to the Keywords family," said Keywrods' CEO, Andrew Day

Keywords Studios PLC (LON:KWS), the video games support services provider, has beefed up its art services offering with the acquisition of Fire Without Smoke Ltd.

The company is paying up to £5.2mln to acquire the company from the founders Will O'Connor, Michael David Thomson and others.

WATCH: Keywords Studios says acquisition of video game trailer specialist is an important development for the company

Fire Without Smoke provides a full suite of creative and marketing services to game publishers and developers, creating assets such as game trailers, marketing art and materials for e-sports events, and providing marketing consultancy and general design services to the video game industry.

Will O'Connor will continue as managing director and the other founders, together with the rest of the team, will also remain with the business.

For the year ending 31 May 2018, Fire Without Smoke is expected to have revenues of £2.8mln and adjusted profits before tax of around £700,000.

Keywords is paying a consideration comprised of £3.85mln in cash, £0.5mln of which is deferred until the first anniversary of acquisition and subject to certain performance targets, and the issue of 77,006 new shares in Keywords.

"Fire Without Smoke's specialised offering represents an excellent addition to the group's existing capabilities and adds some exciting new services to our global service platform,” said Andrew Day, the chief executive officer of Keywords Studios.

“Their high-end video game trailers expertise will be of great interest to Keywords' large client base, as will their broad suite of creative services, which range from marketing strategy to providing marketing content for events including e-sports tournaments, which can play a significant role in influencing the success of event and game launches,” he added.

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