Patrick O'Donnell’s Post

Good to see our comments picked up on the proposed offer for Keywords Studios by EQT. As the largest player in the game services business, with a massive roadmap for future consolidation; and given the cash-generative nature of its business model; it is no surprise to see Private Equity all over Keywords given the dip in valuation in the past 12 months unfairly driven by AI related fears. Therefore, the bid level, although at a decent premium for shareholders though still in line with longer-term average multiples is likely to attract competitive interest from large PE funds in our view at Goodbody. #videogaming #mergersandacquisitons #keywordsstudios https://lnkd.in/eyzx8Xce

Keywords Studios PLC (AIM:KWS, OTC:KYYWF) said it is “confident in delivering good overall revenue growth” for 2024 in an interim trading statement published on Monday. Although organic revenues declined 1.9% to $440.4 million (£334.6 million) in the first half, performance is expected to be second-half weighted as the gaming industry emerges from slower content-creation trends. Adjusted operating profit dipped 9.6% to $57.4 million, with margins hitting the forecasted target of 13%. It comes as Keywords prepares to be taken private by private equity group EQT in a £2.1 billion deal. Bertrand Bodson, chief executive of Keywords Studios, stated: “The transaction represents an exciting new chapter for the business as we continue our journey. More at #Proactive #ProactiveInvestors http://ow.ly/Iry4105IPwg

The news about EQT's potential $2.8 billion acquisition of Keywords Studios could lead to more mergers and acquisitions in the gaming industry. This deal, valuing Keywords at a 73% premium over its previous trading price, highlights the significant interest and investment potential in gaming services companies. Keywords Studios, known for its work on major titles like Assassin's Creed and Fortnite, has seen its shares surge due to the takeover talks. Such high-profile deals often spur similar activities as other private equity firms and larger gaming companies seek to expand their capabilities and market reach. The gaming industry has been experiencing consolidation, driven by the need for diverse service offerings and advanced technology to stay competitive. This deal could encourage other firms to pursue similar strategic acquisitions. Who is next? Will savvy investors start grouping work for hire studios? EQT Group Sumo Digital Ltd Room 8 Studio Virtuos PTW Lionbridge Games https://lnkd.in/gkkhiAQu #games #codev #gamedev #MandA #mergers #aquisitions #corporatestrategy #businessexpansion

Investment news: Keywords Studios is being acquired by Swedish investment firm @EQT in a deal valued at £2.2 billion The agreement, announced on the London Stock Exchange (below), sees EQT acquiring all of Keywords' issued and to be issued shares for £24.50 per share in cash. EQT, already a player in the gaming industry, strengthens its presence with this acquisition. Keywords Studios offers a comprehensive suite of services, from development and art production to quality assurance, localization, and marketing. This acquisition bolsters EQT's portfolio in the ever-growing gaming landscape. The deal, valued at roughly £2.1 billion on a fully diluted basis, will be financed through a combination of equity and debt by EQT. Finalization is expected in the fourth quarter of 2024. This acquisition signifies a major move in the game services industry. Stay tuned for further updates on how this deal will impact Keywords Studios and the wider gaming landscape. (source: https://lnkd.in/ecT8gwf9)

📣 Big News! Keywords Studios, the Dublin-based game developer firm, is set to be acquired by Swedish equity firm EQT Group in a £2.1 billion (€2.4 billion) deal. This takeover represents a 66.7% premium on its share price, with EQT offering £24.50 (€29) per share. Chairman Don Robert highlights this as an opportunity for shareholders to realize their investment value in cash upfront. Despite past volatile returns, the strategic objectives remain on track. This move also adds to the trend of firms being taken private from the London Stock Exchange. Keywords Studios, a major player working with giants like Google, Nintendo, and Electronic Arts (EA), was founded in 1999 and now operates in 26 countries. EQT’s successful tech investment history adds promise to this exciting acquisition. #Acquisition #KeywordsStudios #EQT #TechIndustry #Investment #GamingIndustry #BusinessNews

EQT in advanced talks to buy Keywords Studios for $2.8 billion Full Article Link >>> https://lnkd.in/g37AF7NV European private equity group EQT is in advanced discussions to buy Dublin-based video game services company Keywords Studios for 2.2 billion pounds ($2.79 billion), the companies said in a statement. EQT is negotiating over a possible cash offer of 25.50 pounds per share of London-listed Keywords, the statement said. This offer represents a premium of […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

EQT in advanced talks to buy Keywords Studios for $2.8 billion Full Article Link >>> https://lnkd.in/gzHd8-N3 European private equity group EQT is in advanced discussions to buy Dublin-based video game services company Keywords Studios for 2.2 billion pounds ($2.79 billion), the companies said in a statement. EQT is negotiating over a possible cash offer of 25.50 pounds per share of London-listed Keywords, the statement said. This offer represents a premium of […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

Keywords Studios PLC (AIM:KWS, OTC:KYYWF) has confirmed the receipt of a bid approach from EQT Group worth around £2.2bn. Dublin-based games services specialist Keywords said it was one of a series of potential deals tabled by the private equity firm, but this one being at the value the "board would be minded to recommend". EQT, which has around £200 billion under management, has until the close of business on June 15 to table a formal offer. If the acquisition goes ahead, Keywords investors would receive £22.50 a share - a 70% premium to Friday's closing price - plus they'd be entitled to the final dividend payment. Since hitting a high of more than £33 in September 2021, the shares have almost halved in value amid worries that AI may be used to carry many of the games industry tasks outsourced to the company by customers such as Activision Blizzard and Tencent. In the last year, the share price has tumbled 36%. More at #Proactive #ProactiveInvestors http://ow.ly/KSoy105tJ3I

Keywords Studios PLC (AIM:KWS, OTC:KYYWF) said investment firm EQT Group has tabled a 2,450p per share, £2 billion offer for the business, which it is minded to recommend. To finalise transaction documentation, the "put up or shut up" date (deadline for making a formal bid) has been extended to July 3 at 5 p.m. In the same announcement, Keywords expressed confidence in delivering strong revenue and profit growth this year, although its performance is likely to be second-half weighted. This comes as the sector emerges from the slower content creation trends that are currently dampening industry spending. "We have had a small number of larger game development projects deferred to the second half or canceled, creating capacity gaps in Create which were unable to be filled at short notice," it told investors. "This, together with ongoing softer demand in Globalize and the relatively slow ramp-up in content production in... More at #Proactive #ProactiveInvestors http://ow.ly/vATL105yuZZ

Keywords Studios to be Acquired by EQT for £2.2 Billion Big news for the gaming industry! Keywords Studios, a leading provider of game development services, is being acquired by Bidco(Houting UK Limited) a newly formed company indirectly whooly-owned by EQT's BPEA Fund VIII, for £2.2 billion. Here's a quick breakdown: Keywords Studios is a trusted partner for major video game and entertainment companies, offering creative and technical solutions across the entire development cycle. EQT Group has a strong track record in technology and services, and will provide Keywords Studios with the resources to accelerate growth. The deal is expected to close in Q4 2024, subject to shareholder approval. Keywords Studios' leadership team will remain in place and the company will continue to operate independently. This acquisition is a positive sign for the future of Keywords Studios. EQT's investment will allow the company to expand its services, reach new markets, and solidify its position as a leader in the gaming industry. Stay tuned for further updates! #gamingindustry #gamesindustry #acquisition #gamedevelopment #goalreify