Keywords Studios (LON:KWS ) said it has entered into an agreement to acquire the entire issued share capital of High Voltage, a privately owned provider of game development services to the video games industry, for a total consideration of up to US$50 million.
Keywords will pay a maximum amount of $50m, with an initial consideration of $23.75m in cash and $9.75m in new ordinary shares, plus deferred consideration of up to $16.5m based on performance targets and other conditions being met on or prior to 31 December 2021.
The acquisition of High Voltage, an AAA game developer based near Chicago with a subsidiary studio in New Orleans, is expected to further Keyword’s strategy to become the 'go to' technical and creative services platform for the global video games industry.
HVS and its substantial team of game development professionals have shipped over 100 games across all genres and platforms and lists game franchises such as Fortnite, Saints Row, Mortal Kombat, Hunter the Reckoning, and Lego Racers amongst its notable credits.
Shares in Keywords Studios have increased by over 20% in the past month to open 2.67% higher at 2,532p this morning following the announcement.
High Voltage boasts 27-years of game development in the global video games market and has grown strongly in recent years and is expected to generate EBITDA of c. $9m in 2021.
Andrew Day, CEO of Keywords Studio said the HVS team will bring “deep expertise” in the Unreal Game Engine development environment and a track record of having worked with many client proprietary game engines, gaming platforms and game genres, which he said “all adds further breadth and depth to Keywords Studios' existing capabilities.”
“Furthermore, Keywords Studios' investment in our studio is an outstanding sign for the continued expansion of game development in Illinois and Louisiana. We genuinely look forward to working together with everyone at Keywords Studios and fulfilling a noteworthy role in this new journey with them,” commented Kerry Ganofsky, Founder of High Voltage.
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