Keywords Studios PLC (AIM:KWS, OTC:KYYWF) has announced its latest acquisitions, picking up marketing agency Waste Creative and Aussie development studio Wicked Witch Software.
The addition of London-based Waste Creative allows the company to address rising client demand for games-as-a-service support – as, among strategy and creative production services, it provides player community management, for mobile video game creators including Supercell, Nintendo and Riot Games.
Wicked Witch, meanwhile, works for major publishers including Microsoft and Riot Games in games and graphic application development. The deal is Keyword’s second in Australia this year and the prior acquisition, Tantalus Media, is a partner.
"We are delighted to have further strengthened the Keywords group by adding such talented teams in London and Melbourne,” said chief executive Bertrand Bodson.
He added: “We are really looking forward to working with Waste Creative's highly skilled and experienced team.
“Games as a service marketing support with a focus on community growth and fan retention are areas of increasing importance to our clients and Waste Creative will help us meet that growing demand and provide them with extensive and more integrated marketing solutions.”
Waste Creative is forecast to generate some £6mln of revenue in the year ending June 30, 2022, similarly Wicked Witch is also forecast to bring in £6mln.
Keywords is paying up to £9.8mln for Waste, comprising £2.2mln of upfront cash and shares plus future payments tied to business performance over the next three years.
It is paying £6.5mln of cash to buy Wicked Witch. Keywords expects Tantalus and Wicked Witch will continue to collaborate closely on certain large projects.
"We are very excited to join our friends at Tantalus as part of the Keywords group and to help to expand the business in Australia and beyond,” said Wicked Witch studio head Steve Dauterman.
“The acquisition will help accelerate our growth and provide our clients and staff with the opportunities that come with joining this industry leading global business. We are looking forward to the next phase in the studio's development as part of the Keywords group".