Keywords acquires two Brighton-based game developers for £26m

(Sharecast News) - Technical services provider Keywords Studios has acquired both Studio Gobo and Electric Square for a total consideration of up to £26m.Keywords told investors on Monday that it would make an initial consideration of £10.5m in cash and 254,529 new ordinary shares in the group, which will be issued on the anniversary of completion.The remaining £11m will be paid in cash and shares, or all in cash at the discretion of Keywords, subject to the group witnessing a "substantial increase" in Gobo's EBITDA over the next year.Keywords expect the acquisition to be earnings enhancing within the first year.Gobo provides game development services to video game developers and publishers around the world from its Studio Gobo and Electric Square studios in Brighton and Hove, UK.Andrew Day, Keywords Studios' chief executive, said, "By significantly enhancing our game development services in both scale and expertise, these studios together with recently acquired Snowed In, Sperasoft, d3t and GameSim help position Keywords as a go-to game development partner and give us ever greater visibility of games in the pipeline, at the outset of their development."As of 0940 BST, Keywords shares had risen 4.86% to 1,850.66p.