Swedish investment company EQT Group has tabled a cash offer of £25.5 ($32.4) per share to acquire Keywords Studios. The Financial Times reports the overall deal would value Keywords at £2.2 billion ($2.8 billion).
Keywords is a global service provider for the video game industry. It offers services covering audio development, production, QA testing, marketing, player engagement, localization, and more.
The company boasts over 70 studios in 25 countries and employs over 12,000 people worldwide. It has worked with clients including Nintendo, NetEase, Take-Two Interactive, Square Enix, Ubisoft, Supercell, EA, Riot Games, and Tencent.
Keywords confirmed it’s currently in “advanced discussions” with EQT Group in an update to investors. The company explained EQT previously made four “unsolicited proposals,” which the board ultimately rejected. The latest offer, however, represents a “significant increase” on the initial proposal.
“The Board remains confident in the Company’s growth strategy of building the only truly global platform providing solutions to the video games and entertainment industries, both organically and through acquisitions, and EQT is supportive of this strategy,” reads a statement from Keywords.
“The Board of Keywords Studios has carefully evaluated the Possible Offer with its financial advisers and concluded the Possible Offer is at a value that the Board would be minded to recommend to Keywords Studios shareholders.”
Keywords has expanded significantly in recent years to enhance its business portfolio, often spending millions on major acquisitions in the process. Last December, the company purchased The Multiplayer Group for £76.5 million to bolster its ability to support live-service titles. A few months earlier, it bought Call of Duty and Fortnite support studio Hardsuit Labs and PR agency FortySeven.