Keywords Studios PLC (LON:KWS) said it has acquired UK video game development services provider Climax Studios in a move it says will bring “significant additional scale” to its largest service line.
The provider of technical and creative services to the video game industry said it has agreed to purchase Climax in a deal worth up to £43mln, comprised of an initial consideration of £20.2mln in cash and the equivalent of £6.8mln in new shares. Keywords said a deferred consideration of up to £16mln in a mix of cash and shares, will be payable based on growth targets being met following the completion of the acquisition.
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Keywords said the acquisition will further its strategy to become “the 'go to' technical and creative services platform for the global video games industry”, adding that Climax has grown “impressively” in recent years, reporting adjusted earnings (EBITDA) of £4.3mln in 2020.
Based in Portsmouth, Climax has worked with some of the world’s largest video game publishers including Sony, Microsoft, 2K, Codemasters and Electronic Arts.
"We are delighted that Simon [Climax CEO Simon Gardner] and the highly talented Climax team are joining the Keywords family. Climax brings a wealth of expertise, adds significant scale to our rapidly growing Game Development Service Line, and provides access to a new pool of talent from its base in Portsmouth,” Keywords joint interim chief executive Jon Hauck said in a statement.
"The studio's excellent track record of high quality delivery spans over 30 years, with its services in high demand from some of the largest names in the industry. We are very excited about the experience and opportunities that Climax will bring to Keywords, and our clients, and we look forward to enabling their continued growth as part of the group," he added.