Last checked at 6 Apr 2016 07:00
6 April 2016
Keywords Studios plc ("Keywords" and, together with its subsidiaries, "the Group")
Acquisition of the remaining 50% of Kite Team S.L ("Kite Team")
Keywords, the international technical services provider to the global video games industry, today announces that it has agreed with the selling shareholders of Kite Team ("Selling Shareholders") to acquire the 50% of Kite Team not already owned by Keywords 20 months sooner than originally provided for under the terms of the acquisition agreement (the "Agreement") in order to deliver the operational benefits of the full integration of Kite Team into Keywords earlier than planned. Under the terms of the Agreement, the consideration for the remaining 50% of Kite Team would have been no less than €0.8m and no more than €1.8m calculated by reference to the profit before interest and tax of Kite Team in the years to 31st December 2017.
The Agreement has now been revised such that Keywords will pay the Selling Shareholders a total consideration of €1.15m now, which will be satisfied by €1.0m in cash and the balance through the issue of 55,508 new ordinary Keywords shares (the "Consideration Shares"), giving Keywords 100% ownership of Kite Team.
The Consideration Shares will be credited as fully paid and rank pari passu with the existing issued ordinary shares of Keywords when issued. Application has been made to the London Stock Exchange for the admission of 55,508 new ordinary shares to trading on AIM. Admission of the new shares is expected to take place at 8.00am on 11 April 2016. The Company's total issued share capital following admission will consist of 53,893,205 ordinary shares of one pence each with one voting right per share. The above figure of 53,893,205 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company following admission.
Andrew Day, Chief Executive of Keywords Studios, commented:
"Since we acquired the initial 50% of Kite Team in July 2015, it has performed in line with our expectations. The experience of the team is translating into good business wins and momentum is building both in Spain and in Mexico. In Brazil, we are in the process of consolidating the activities of Kite Team with those of our previously acquired business, Reverb.
"We are making progress with moving our Spanish and Latin American audio recording work to Kite Team from our previous regional partners and with full ownership of Kite Team we will have a solid base from which to further develop our activities in Spain and South America."
For further information, please contact:
Keywords Studios plc (www.keywordsstudios.com) Andrew Day, Chief Executive Officer Andrew Lawton, Chief Financial Officer | +353 190 22 730 |
Numis Securities Limited Stuart Skinner / Kevin Cruickshank (Nominated Adviser) James Black / Tom Ballard (Corporate Broker) |
020 7260 1000 |
MHP Communications (Financial PR) Katie Hunt / Jade Neal / Ollie Hoare
|
020 3128 8100 |
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 facilities in Dublin, Rio de Janeiro, Montreal, Portland, Mexico City, Los Angeles, Seattle, Tokyo, Singapore, New Delhi, Pune, Rome, Milan, Barcelona, Madrid, Shanghai, Beijing, Manila and London, it provides integrated art creation, localisation, testing, audio and customer care services across 50 languages and 14 games platforms to a blue chip client base in more than 15 countries. It has a strong market position, providing services to 20 of the top 25 most prominent games companies, including Microsoft, Supercell, King, Namco Bandai, Sony, Konami, Electronic Arts, 2K, and Square Enix. Recent titles worked on include Tom Clancy's The Division, Halo 5: Guardians, Batman: Arkham Knight, Street Fighter V, Rise of the Tomb Raider, Clash Royale, Mobile Strike. Keywords is listed on AIM, the London Stock Exchange regulated market (KWS.L).
About Kite Team (www.wearekiteteam.com)
Kite Team is rapidly becoming a leader in games localisation and audio recording for both Iberian and Latin American Spanish, serving a blue chip client base of global video game publishers and developers from its audio recording and localisation studios in Madrid and Mexico City.