Keywords Studios Acquires LA-Based g-Net Media For USD32 Million

(Alliance News) - Keywords Studios PLC on Wednesday said it has acquired g-Net Media Inc, a Los Angeles, California-based provider of marketing services to the video games and entertainment industries, for USD32 million.

The London-based technical and creative services provider to the global video games industry will pay an initial USD14.4 million in cash and the equivalent of USD3.6 million in Keywords shares a year after the acquisition.

Founded in 2001, g-Net Media provides marketing services to games publishers including Activision Blizzard Inc, Microsoft Corp, Bethesda and Bungie, as well for media and entertainment companies such as Netflix Inc, Amazon.com Inc and NBC Universal.

g-Net Media generated an adjusted earnings before interest, tax, depreciation and amortisation of USD2.2 million for the year ended May 31, with revenue expected to be around USD20 million and Ebitda around USD3.0 million.

Chief Executive Andrew Day said: "This represents a significant milestone as we continue to build our marketing service business to become the first truly global, video game specialised marketing services company. With its well established position as a valued partner to some of the biggest names in video games, and from its home in Hollywood, gnet brings the number of Keywords's specialist marketing studios to seven. Combined, Keywords' annual marketing services revenues are now over EUR35 million with more than 180 people employed globally."

Shares in Keywords were up 0.8% at 2,177.00 pence in London on Wednesday.

By Zoe Wickens; zoewickens@alliancenews.com

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