Dublin-headquartered Keywords Studios, a leading provider of video game services, is evaluating a £2.2 billion acquisition offer from Swedish private equity firm EQT Group, representing a significant premium over its recent share price. The potential takeover falls under City takeover rules, with a deadline of 15 June for the final decision.
Keywords Studios, a Dublin-headquartered provider of video game services, has announced its consideration of a £2.2 billion takeover bid from the Swedish private equity firm EQT Group. This offer, equating to £35.50 per share, follows four previously rejected proposals from EQT and represents a 70% premium over Keywords’ closing share price on Friday.
The offer falls under City takeover rules, giving EQT until 5pm on 15 June to either finalize the offer or withdraw, although this deadline may be extended. Following the announcement, Keywords’ shares surged 62% to £23.82, marking the highest rise on the AIM All-Share Index.
Keywords Studios, listed on the London Stock Exchange’s Alternative Investment Market (AIM) since 2013, has expanded from providing business software translation services to specializing in the video game sector. It has collaborated with notable developers on popular franchises such as Fortnite, Assassin’s Creed, and The Legend of Zelda.
The potential acquisition is indicative of a broader trend of foreign takeovers of UK-listed firms perceived as undervalued. Recent similar buyouts include Dechra Pharmaceuticals and cybersecurity specialist Darktrace.
Founded in 1998 and significantly expanded under CEO Andrew Day since 2009, Keywords Studios has grown to employ over 13,000 staff worldwide, with a market capitalization of approximately £1.9 billion.
