Keywords Studios Plc Regulatory News (KWS)

22nd December 2016

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

Acquisition of Sonox Audio Solutions, S.L.U.

- Strengthening the Group's Audio services

Keywords Studios, the international technical services provider to the global video games industry, today announces that it has acquired Sonox Audio Solutions, S.L.U. ("Sonox") for a total consideration of €650,000 from its founder, Francisco Barreras Benavente (the "Sellers"). Based in Madrid, Spain, Sonox provides audio recording and localisation services to video game companies targeting Spanish and Latin American markets.

Founded in 2010 by Francisco Barreras Benavente, Sonox has three audio recording studios in Madrid and manages a well-established network of translators, voice actors, audio engineers and voice directors in Spain. In addition, Sonox works with partner studios in Mexico and Brazil to provide audio and localisation services for those territories. Sonox also already provides certain services to the Group and its acquisition will enable the Group to capture the margins on those services. Following the acquisition, Francisco Barreras Benavente and the Sonox management team will remain in the Group.

Under the terms of the acquisition, which is expected to be earnings enhancing in 2017 Keywords is satisfying the consideration through the payment of €500,000 in cash and the issue to the Sellers of 24,881 new ordinary shares in Keywords, which will be subject to a two-year lock in period.

Application has been made to the London Stock Exchange for the admission of 24,881 new ordinary shares to trading on AIM. Admission of the new shares is expected to take place at 8.00am on 30 December 2016. The Company's total issued share capital following admission will consist of 54,428,882 ordinary shares of one pence each with one voting right per share. The above figure of 54,428,882 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.

Fulvio Sioli, Regional Managing Director, Europe, Keywords Studios commented:

"Sonox has been working with Synthesis Iberia for some years and with a growing portfolio of leading game publishers as its clients. The merging of Sonox, Synthesis and Kite Team in Madrid presents a unique opportunity to establish clear leadership in this key market for games audio and text localisation. The facilities, talent and financial strength of our audio offering in Spain is truly unrivalled.

"We are delighted to be able to welcome Sonox's highly talented team to the Keywords family and we look forward to working closely together to fully integrate all three of our businesses in Madrid and build upon the excellent reputation enjoyed by them all."

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Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

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, Quebec City, Portland, Mexico City, Los Angeles, Seattle, Tokyo, Singapore, New Delhi, Pune, Rome, Milan, Barcelona, Madrid, Taipei, Shanghai, Beijing, Manila, Hamburg, Paris 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 21 of the top 25 most prominent games companies, including Microsoft, Supercell, King, Bandai Namco, 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 Sonox (www.sonox.es)

Sonox offers top quality audio and text localization in Spanish, Latin American Spanish and Brazilian Portuguese. It has its own recording facilities in Madrid, Spain, and shares studios in Mexico City and Rio de Janeiro with its partners. Its clients include major publishers such as Electronic Arts and Blizzard.