Keyword Studios PLC (LON:KWS) is building its business with such impunity that it has now acquired a company called Jinglebell, a week before Christmas.
Jinglebell, a ‘boutique’ audio studio in Milan, is one of two acquisitions announced by Keywords on Thursday. The other is Indigo Pearl, a London-based video game centred PR agency.
Keywords told investors that its latest deals will further the group's strategy to become the 'go to' technical and creative services platform for the global video games industry.
"We are delighted to have further grown the Keywords family by adding such talented teams in Milan and London.
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"We are delighted to have further grown the Keywords family by adding such talented teams in Milan and London,” said Andrew Day, Keywords chief executive.
He added: "We look forward to working with the highly experienced and creative teams at Jinglebell and Indigo Pearl, supporting their growth and building further on our reputation as the leading provider of highly specialised video games services around the world."
It is paying up to €1.8mln to acquire Jinglebell, comprising €1.5mln of cash and the equivalent of €300,000 in shares on the first anniversary of the deal.
Jinglebell has eighteen staff, will generate €2.1mln of revenue in 2020 and €0.1mln of earnings (EBITDA). It works with major game studios (such as Activision, Electronic Arts, Sega, and Square Enix) as well as consumer brands (including Barilla, L'Oreal, Vodafone and Nestlé).
Keywords is paying an initial £1.1mln in cash to buy Indigo Pearl, the equivalent of £500,000 on the first anniversary of the deal, and potentially a further £400,000 in cash after three years subject to certain conditions.
Indigo Pearl is expected to generate £1.8mln of revenue in 2020, for £280,000 of earnings (adjusted EBITDA). The PR firm currently has a 10-person team which run traditional as well as social media and influencer driven campaigns.
Its clients include Fortnite developer EPIC Games, Google Stadia, Devolver Digital, Sony PlayStation, Ubisoft Entertainment and Pokemon Go maker Niantic Inc.