Keywords Studios Plc Regulatory News (KWS)

3 August 2022

Keywords Studios plc ("Keywords Studios", "Keywords", the "Group")

Acquisition of Mighty Games and the completion of the acquisition of Forgotten Empires

Mighty Games' automated AI based technology will enhance Keywords' games testing solutions

Keywords Studios, the international technical and creative services provider to the global video games industry, today announces that it has acquired Mighty Games Group Pty Ltd ("Mighty Games", "Mighty") and has completed the acquisition of Forgotten Empires, LLC ("Forgotten Empires"). These acquisitions will further the Group's strategy to become the 'go to' technical and creative services platform for the global video games industry.

Founded in 2013 by studio head Matt Ditton and co-founder Ben Britten-Smith, who will continue leading Mighty Games within Keywords Studios, the studio specialises in the development of automated games testing solutions including its "Build and Test" platform. Build and Test uses AI technology deployed on multiple machines to automatically test code, detect bugs and defects and report errors on a 24/7 basis. Mighty is based in Melbourne, Australia and, in addition to games testing solutions, the 21 person team provides game development services for clients including global mobile game developers as well as Australian developers and publishers.

Under the terms of the Mighty Games acquisition, Keywords will pay a maximum amount of AUD$10.0m, comprised of initial cash consideration of AUD$4.8m, the equivalent of AUD$1.2m in new ordinary shares to be issued within 30 days of completion, and up to AUD$4.0m, in a mix of cash and new ordinary shares based on growth targets being met over the three years following completion. The new ordinary shares in Keywords Studios to be issued are subject to one-year lock in periods and orderly market provisions for a further year. 

Further to the announcement of 8 June 2022, Keywords is pleased to announce that it has completed the acquisition of Forgotten Empires on the terms previously announced.

Bertrand Bodson, CEO of Keywords Studios commented:

"We are delighted to welcome the Mighty Games team to Keywords and to be able to offer their impressive automated game testing solutions and expertise to our clients, in line with our strategy to harness technology to do more for our clients and remain at the forefront of our industry. Mighty's talented game development team further strengthens our game development presence in Melbourne and follows the recent acquisitions of Tantalus and Wicked Witch in Australia. We are really looking forward to supporting Mighty's team and growth as part of the Group."

Matt Ditton and Ben Britten-Smith of Mighty Games, commented:

"We are really excited to join Keywords Studios, an industry leading, fast growing business with a global footprint. Ben and I are looking forward to delivering strong growth with the support of Keywords and helping to offer technology enabled Build and Test solutions to its global client base. We see it as a strong cultural fit and we look forward to working closely with the wider Keywords' group to drive the combined business forward."

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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 70 facilities in 24 countries strategically located in Asia, Australia, the Americas and Europe, it provides integrated art creation, marketing services, game development, testing, localization, audio and player support 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. Across the games and entertainment industry, clients include Activision Blizzard, Bandai Namco, Bethesda, Electronic Arts, Epic Games, Konami, Microsoft, Netflix, Riot Games, Square Enix, Supercell, TakeTwo, Tencent and Ubisoft. Recent titles worked on include Anthem, Star Wars Jedi: Fallen Order, 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 Mighty Games (www.mightygamesgroup.com)

Mighty Games' experienced team focuses on developing tech based AI led solutions for the video game industry. The studio has developed a platform of scalable artificial intelligence driven, automated, build and testing tools optimized for game development pipelines. Mighty is currently running thousands of hours of automated testing per day on client titles that run the gamut of mobile games, console titles, multiplayer and crossplay games across a variety of genres.