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Keywords Studios PLC on Wednesday accepted a £2.1 billion takeover bid from private equity firm EQT Group. The cash proposal values the Dublin-based provider of technical and creative services for video game production at 2,450 pence per share. Shares in Keywords Studios rose 2.9% to 2,386.00p each in London on Wednesday. The offer places a valuation on Keywords of £2.1 billion on a fully-diluted basis and implies an enterprise value of £2.2 billion. The acquisition price is lower than EQT’s earlier 2,550p per share bid made in May. Keywords subsequently reported in June that some of its projects were delayed or cancelled. The Keywords’ board ‘unanimously’ backed the takeover terms. Keywords Chair Don Robert said the firm was mindful of the ‘near-term challenges’ in the broader video games and entertainment industries, as well as other ‘longer-term uncertainties’, which have caused volatile returns for Keywords Studios’ shareholders over the past fifteen months. ‘On balance, the board believes that this offer represents a good opportunity for Keywords Studios shareholders to realise value for their investment in cash upfront at a significant premium to the undisturbed share price,’ Robert continued. ‘We therefore unanimously recommend the offer to our shareholders.’ Stockholm-based EQT said it has acceptances for 7.6% of Keywords shares. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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