TIDMKWS
RNS Number : 2255Z
Keywords Studios PLC
17 September 2020
17 September 2020
Keywords Studios plc ("Keywords", "the Group")
Acquisition of Heavy Iron Studios
West Coast US Expansion for Keywords' Game Development Service
Line
Keywords Studios, the international technical and creative
services provider to the global video games industry, today
announces that it has entered into a conditional agreement to
acquire the entire issued share capital of Heavy Iron Studios, Inc.
("Heavy Iron"), a provider of specialised game development services
, for total consideration of up to US$13.3m. The acquisition will
further the Group's strategy to become the 'go to' technical and
creative services platform for the global video games industry.
Founded in 1999 and acquired from THQ Inc. in 2009 by Lyle Hall,
a 30-year industry veteran, Heavy Iron is based in Los Angeles,
California, where its team of 43 developers provides full game
development, co-development, live operations and porting services
for the video games industry. Renowned as a high-quality studio,
Heavy Iron has recently worked on Marvel's Avengers with Crystal
Dynamics and the Call of Duty franchise with Activision as well as
multiple ports and remasters, including the full series of Disney
Infinity games. Primarily focused on high-end console and PC games,
Heavy Iron's specialty is technical expertise across multiple
proprietary engine technologies, and it has strong development
experience across all major platforms.
For the year ended 31 May 2020, Heavy Iron generated unaudited
revenues of US$5.4m and adjusted EBITDA of US$1.0m. Under the terms
of the acquisition, which is subject to certain closing conditions,
Keywords will pay initial consideration of US$4m in cash and the
equivalent of US$0.5m in new ordinary shares to the seller on the
first anniversary of the acquisition, which will then be subject to
orderly market provisions for a further year. The deferred
consideration of up to US$8.8m will be payable to the seller, in a
mix of cash and shares, based on performance targets being met by
the first and second year anniversaries of the acquisition.
Andrew Day, CEO of Keywords Studios commented:
" We welcome the extremely experienced and talented Heavy Iron
team to the Keywords family. The addition of Heavy Iron to the
Group further strengthens and scales our Game Development service
line. By bringing a new base on the West Coast, it will provide
access to many of the world's leading game companies and the local
talent pool from where we can expand our activities in the region
and build upon our existing presence in Audio and
Localisation."
"Now our largest service line, Game Development continues to
grow strongly with all our studios hiring. We look forward to Lyle
and his terrific team joining us and supporting Heavy Iron's
continued growth from their strong position."
"This marks our third acquisition since our recent placing, and
we have a healthy pipeline of acquisition opportunities which we
are actively reviewing and advancing."
Lyle Hall, Chief Executive Officer of Heavy Iron, further
commented:
"We are thrilled to be joining the Keywords Studios family and
look ahead to sustained growth. Keywords' leading position in the
video games industry, its breadth of services, and its geographical
reach will strengthen our ability to continue providing outstanding
service and support to our partners. We also look forward to
collaborating with other members of the Group in offering wider
capabilities to all our clients."
For further information, please contact:
Keywords Studios (www.keywordsstudios.com)
Andrew Day, Chief Executive Officer
Jon Hauck, Chief Financial Officer
Joseph Quinn, Investor Relations +353 190 22 730
Numis Securities
Stuart Skinner/Kevin Cruickshank/Will
Baunton 020 7260 1000
MHP Communications (Financial PR) 020 3128 8193
Katie Hunt/James Midmer/Charles keywords@mhpc.com
Hirst
About Keywords Studios ( www.keywordsstudios.com )
Keywords Studios is an international technical services provider
to the global video games industry. Established in 1998, and now
with 62 facilities in 21 countries strategically located in Asia,
the Americas and Europe, it provides integrated art creation,
marketing services, software engineering, testing, localization,
audio and customer care services across more than 50 languages and
16 games platforms to a blue-chip client base of over 950 clients
across the globe.
Keywords Studios has a strong market position, providing
services to 23 of the top 25 most prominent games companies,
including Activision Blizzard, Bandai Namco, Bethesda, Electronic
Arts, Konami, Microsoft, Riot Games, Square Enix, Supercell,
TakeTwo, Epic Games and Ubisoft. Recent titles worked on include
Call of Duty: Modern Warfare, Anthem, Star Wars Jedi: Fallen Order,
Assassin's Creed Odyssey, Valorant, League of Legends, Fortnite,
Clash Royale and Doom Eternal. Keywords Studios is listed on AIM,
the London Stock Exchange regulated market (KWS.L).
About Heavy Iron ( www.heavyiron.games )
Founded in August 1999, Heavy Iron Studios is a Los Angeles
based video game developer recognized as a leader in creating hit,
mass-market titles for consoles, PC, mobile, and AR/VR platforms.
Since June 2009, Heavy Iron Studios, Inc. has been a wholly
independent and privately held company. Recent titles worked on
include Marvel's Avengers, Call of Duty, and The Grand Tour Game.
Titles the studio has worked on have sold a combined lifetime total
of +200 million units and generated over $2 billion in revenue,
across multiple genres and all platforms.
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September 17, 2020 02:00 ET (06:00 GMT)
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