Keywords Studios Plc Regulatory News (KWS)

20 July 2018

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

Acquisition of Snowed In

Keywords expands its Engineering Service Line in Canada

Keywords Studios, the international services provider to the global video games industry, today announces that it has acquired Snowed In Studios Inc. ("Snowed In") for a total consideration of up to CAD$4m, from its current owners, Jean-Sylvain Sormany, Tim Vito and Evan Hahn (the "Sellers").

Founded in 2010 and based in Ottawa, Canada, Snowed In offers engineering and co-development services to the video-games industry and has a strong global reputation and well-established relationships with clients such as Ubisoft and Bethesda. The Company has 29 employees all working in-house in its office in Ottawa led by the current owners, who will remain with Snowed In to drive its growth as part of Keywords.

Snowed In achieved EBITDA of CAD$0.8m in its last financial year ending January 31 2018, from revenue of CAD$2.4m. Under the terms of the acquisition Keywords is paying an initial CAD$2.67m in cash and will issue 37,983 new ordinary shares in Keywords to the Sellers on the first anniversary of the acquisition which will then be subject to orderly market provisions for a further 12 months. Deferred consideration of up to CAD$0.2m will be payable in cash to the Sellers 18 months after the acquisition.

Andrew Day, CEO of Keywords Studios commented:

"The addition of Snowed In to the Group will add strength and scale to our recently established Engineering service line and enable Snowed In to take advantage of the Group's very strong presence in the region to support its growth.

"Having grown the Engineering service line from nothing in May 2017, we now employ over 300 software engineers in multiple regions, and I'm delighted that Jean-Sylvain, Tim, Evan and their highly talented and creative team are joining the Group as we continue to grow."

Ends

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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 40 facilities in 20 countries strategically located in Asia, the Americas and Europe, it provides integrated art creation, software engineering, testing, localisation, audio and customer care services across more than 50 languages and 16 games platforms to a blue-chip client base of approximately 650 clients across the globe. It has a strong market position, providing services to 23 of the top 25 most prominent games companies, including Activision Blizzard, Bandai Namco, Bethesda, Electronic Arts, Konami, Riot Games, Sony, Square Enix, Supercell, TakeTwo, and Ubisoft. Recent titles worked on include Uncharted 4: A Thief's End, Call of Duty: WWII, Mortal Combat X, Assassin's Creed Origins, Battlefield 1, League of Legends, Fortnite, Clash Royale, and Mobile Strike. Keywords Studios is listed on AIM, the London Stock Exchange regulated market (KWS.L).

About Snowed In (www.snowedin.ca)

Snowed In Studios is an Ottawa-based video game and interactive media developer. The studio was founded by experts of the video game industry who strive to push the boundaries of software development and be the providers of top-quality interactive experiences. The studio aims to uphold a reputation of efficiency, expert knowledge, and communication-based processes in order to create the best solutions for its clients. With a portfolio including high-profile clients such as 2K, Bethesda, Eidos, Ubisoft, Nickelodeon, PBS Kids, Compulsion Games and many other major clients - the team at Snowed In is no stranger to the challenges and requirements of modern game development.