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(Alliance News) - Keywords Studios PLC said Thursday it has acquired UK-based game development services group Climax Studios Ltd for GBP43 million.
The London-based video game industry services provider said it acquired the entire issued share capital of Climax, which will "bring significant additional scale" to the group's game development service line.
Portsmouth-headquartered Climax is one of the longest established game development businesses in the UK.
Under the terms of the acquisition, Keywords will pay a maximum consideration of up to GBP43.0 million, comprised of an initial consideration of GBP20.2 million in cash and the equivalent of GBP6.8 million in new shares. Deferred consideration of up to GBP16.0 million, in a mix of cash and new ordinary shares, will also be payable based on growth targets being met over the year following completion.
Keywords Studios Joint Interim Chief Executive commented: "Climax brings a wealth of expertise, adds significant scale to our rapidly growing game development service Line, and provides access to a new pool of talent from its base in Portsmouth.
"The studio's excellent track record of high quality delivery spans over 30 years, with its services in high demand from some of the largest names in the industry. We are very excited about the experience and opportunities that Climax will bring to Keywords, and our clients, and we look forward to enabling their continued growth as part of the group."
Shares in AIM-listed Keywords were trading 4.1% higher at 2,998.00 pence in London.
By Will Paige; willpaige@alliancenews.com
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