TIDMKWS
RNS Number : 6363S
Keywords Studios PLC
18 March 2021
18 March 2021
Keywords Studios plc ("Keywords Studios", the "Group")
Enters Australia with acquisition of 85% interest in Tantalus
Media Pty Ltd ("Tantalus")
High quality game developer provides a strong platform for
growth in the region
Keywords Studios, the international technical and creative
services provider to the global video games industry, has acquired
an 85% interest in Tantalus(1) for a total consideration of up to
US$46.8m.
The investment will further the Group's strategy to become the
'go to' technical and creative services platform for the global
video games industry and marks Keywords Studios' entry into the
Australian video games market.
Founded in 1994 and based in Melbourne, Australia, Tantalus is a
leading and prolific developer of high quality, multi-platform
titles. Led by Tom Crago, the studio has worked on close to 100
games, on every major platform since the Super Nintendo
Entertainment System. Notable game franchises among the studio's
credits include Age of Empires, The Legend of Zelda: Twilight
Princess, Cities Skylines, Sonic Mania and Mass Effect. Tom Crago
will work with Keywords Studios to drive its expansion in the
region, both organically and through a healthy pipeline of
acquisition opportunities.
Tantalus has grown strongly in recent years and generated
adjusted EBITDA of c.US$6m in 2020. Under the terms of the 85%
investment, Keywords Studios will pay a maximum amount of US$46.8m,
comprising initial consideration of US$30.6m (US$18.4m in cash from
existing resources and the equivalent of US$12.2m in new ordinary
shares) and deferred consideration of up to US$16.2m, in a mix of
cash and new ordinary shares, based on performance targets for
Tantalus over two years. The new ordinary shares to be issued as
part of the initial consideration and the deferred consideration
will be subject to a one-year lock-in period and orderly market
provisions for a further one year period.
(1) Keywords has acquired 85% of the issued share capital of
Tantalus' parent company, Keywords Australia Pty Ltd ("Keywords
Australia"), a new company set up for this transaction. P ut and
call options are in place that would allow the Group to buy the 15%
shareholding in Keywords Australia in 3 years from Tom Crago's
wholly owned investment company.
Jon Hauck, Joint Interim CEO of Keywords Studios commented:
"Tantalus brings 27 years of experience of video game
development in Australia for some of the largest global publishers
and leading titles. The talented team, led by Tom Crago and
supported by an experienced management team, has an impressive
track record of development work on major franchises including Age
of Empires, Sonic Mania, The Legend of Zelda, Mass Effect, Cars and
Cities: Skylines.
"We are delighted to welcome Tantalus to the Keywords Studios
family. As our first investment in Australia, we are very excited
to work with Tom and his talented team who will bring invaluable
expertise and market knowledge as we expand our presence in this
attractive and growing region."
Tom Crago, further commented:
"This is a great day for our team, and we are delighted to be
joining the Keywords Studios family. We share the same outlook on
the opportunities within the video game industry, and we're
grateful to Keywords Studios for investing in our growth, not just
in Tantalus, but in the wider Australian market.
"This provides us with a great platform for further expansion,
and with the talent and expertise available in this part of the
world, we are very excited about the future. For all of us, that
means being able to work on more games than ever, with our existing
publisher partners and beyond."
For further information, please contact:
Keywords Studios (www.keywordsstudios.com)
Jon Hauck, Joint Interim Chief
Executive Officer
Sonia Sedler, Joint Interim Chief
Executive Officer
Joseph Quinn, Investor Relations +353 190 22 730
Numis Securities
Stuart Skinner/Kevin Cruickshank/Will
Baunton +44 20 7260 1000
+44 20 3128 8193
MHP Communications (Financial keywords@mhpc.com
PR)
Katie Hunt/James Midmer/Charles
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 over 65 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 Tantalus ( www.tantalus.com.au )
Tantalus Media Pty Ltd is a top-tier, multi-award-winning game
developer based in Melbourne, Australia. One of the longest
established and most prolific developers in the region, Tantalus
has worked on close to 100 games, in its 27 year history. Tantalus
is a trusted partner of Nintendo, Microsoft and Paradox
Interactive, among others. Notable franchises the studio has
developed games for include: Age of Empires, The Legend of Zelda:
Twilight Princess, Cities Skylines, Sonic Mania and Mass
Effect.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQUBORRAWUOAUR
(END) Dow Jones Newswires
March 18, 2021 03:00 ET (07:00 GMT)
Keywords Studios (LSE:KWS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Keywords Studios (LSE:KWS)
Historical Stock Chart
From Apr 2023 to Apr 2024