Dublin-based Keywords Studios, a key player in the video game services sector, is contemplating a substantial buyout offer from Swedish private equity firm EQT Group. The proposed £2 billion offer at £25.50 per share represents a significant premium and could mark a major development in the company’s trajectory.
Keywords Studios, a Dublin-headquartered video game services company listed on the London Stock Exchange’s Alternative Investment Market (AIM), has announced its openness to a £2 billion buyout offer from Swedish private equity firm EQT Group. This comes after four previous unsolicited offers were rejected. The latest proposal, recommending a £25.50 per share offer, represents a premium of over 70% compared to the closing price of £14.70 on the preceding Friday.
Keywords Studios, founded in 1998, transitioned from providing translation services for business software to focusing on the video game industry in the early 2000s. The company’s clients include major developers behind famous game franchises such as Fortnite, Clash of Clans, League of Legends, and Assassin’s Creed. The firm’s shares rose 62% on the news, hitting £23.78.
EQT has until June 15 to either make a firm offer or withdraw. Katie Cousins, an analyst at Shore Capital Markets, noted that AI threats and normalizing tech valuations had previously impacted Keywords’ share price. Despite this, Keywords remains a leader in its sector, benefiting from the global expansion of the video game industry.
