Dublin-based Keywords Studios is to pay up to $50m (€41m) for US game development company High Voltage in its second major acquisition in as many months.
Keywords said that the purchase of thegame development services company formed part of strategy to become the “go to” technical and creative services platform for the global video games industry.
This year Keywords has made five acquisitions worth in the region of £77m (€84.6m) after raised €110m in a placing in May.
High Voltage is expected to generate earnings of $9m next year and Keywords could pay upto a maximum of $50m for the business.
Game services provider Keywords Studios has added yet another company to its roster of studios, with the acquisition of High Voltage Software for a total consideration of up to $50 million.
The terms of the acquisition will see Keywords Studios pay an initial consideration of $23.75 million in cash and the equivalent of $9.75 million in new ordinary shares, plus a deferred consideration of up to $16.5 million if performance targets are met by 31 December 2021.
American game development services company HVS was created in 1993 and has contributed to games such as Fortnite and Mortal Kombat, and developed its own titles such as Hunter: The Reckoning or Lego Racers. It s shipped over 100 games across all platforms.
15 December 2020 | 09:53am
StockMarketWire.com - Video game services provider Keywords Studios said it had agreed to acquire High Voltage, a provider of game development services to the video games industry, for up to US$50 million.
Founded in 1993 by majority shareholder, Kerry Ganofsky, who would continue leading the studio within Keywords Studios, High Voltage was an end-to-end, full-service, AAA game developer based near Chicago, Illinois, with a subsidiary studio in New Orleans, Louisiana. The acquisition will further the group s strategy to become the go to technical and creative services platform for the global video games industry, the company said.
The acquisition marked a significant further expansion of Keywords Studios game development service line and added a presence in Illinois and Louisiana, it added.
High Voltage provides game development services to the video games industry.
The acquisition will further Keywords strategy to become the “go to” technical and creative services platform for the global video games industry, according to a statement from the group.
High Voltage is expected to generate earnings of circa $9m (€7.4m) next year.
Under the terms of the acquisition, Keywords will pay a maximum amount of $50m for the business.
This is comprised of initial consideration of $23.75m in cash and the equivalent of $9.75m in new ordinary shares.
There is also a deferred consideration of up to $16.5m, in a mix of cash and new ordinary shares, based on performance targets and other conditions being met on or prior to 31 December 2021.