Video game services provider Keywords Studios has agreed to acquire Canada-based development studio Smoking Gun Interactive for an initial cash consideration of C$16mln (£10.5mln).
AIM-listed Keywords Studios will pay up to C$40mln with a mix of cash and ordinary shares contingent on growth targets.
Smoking Gun is a 68-person video game development studio based in Vancouver, focused on cross-platform games for mobile, PC and console devices, having worked for publishers including Microsoft and Netflix Games.
Bertrand Bodson, chief executive officer of Keywords Studios, commented: "We are delighted to welcome John, Drew, Angie and the highly skilled Smoking Gun team to Keywords.
“The acquisition builds on our presence in the Vancouver area, which is a rich source of talent and one of North America's video gaming hubs.”
The news follows a raft of acquisitions in recent years for Keywords Studios, as the company diversifies into development and post-production services.
In the latest interim results, Keywords noted that the six acquisitions completed in 2021 contributed to the company’s “strong organic growth”.
John Johnson, Drew Dunlop and Angie Pytlewski of Smoking Gun Interactive said of the acquisition: “We are really looking forward to playing our part in helping to deliver on the strategy of the wider Keywords group by bringing Smoking Gun's expertise and experience to the Group's client offering."
KWS shares are currently trading at 2,296p as of September 21, 11:00 BST.