An Irish video game giant has made a strategic move by acquiring a Liverpool-based studio.
The acquisition is set to expand the company’s global footprint and enhance its game development offerings.
Acquisition Details
Keywords Studios, a leading Irish video game firm, has acquired Liverpool-based Wushu Studios. The deal enhances Keywords’ portfolio and influence in the gaming industry.
Wushu Studios, known for developing high-profile games like Fall Guys and State of Decay, employs around 160 people. The firm offers comprehensive services, such as co-development, porting, and live support.
Leadership and Vision
Alan McDermott, founder of Wushu, will continue to lead the studio alongside his management team post-acquisition. He expressed excitement about the partnership.
“This is an exciting new chapter for Wushu,” said McDermott. “Joining Keywords enables us to maintain our creative freedom while gaining access to extensive resources and expertise.”
Strategic Importance
Wushu Studios’ acquisition aligns with Keywords Studios’ strategy to expand globally. It’s part of their goal to enhance game development services on a worldwide scale.
Bertrand Bodson, Keywords’ chief executive, emphasised the strategic value of the Liverpool hub. “Wushu’s skilled team and strong relationships are vital assets,” stated Bodson.
Financial Aspects
The acquisition was financed through Keywords’ existing revolving credit facility, which included both an upfront payment and an earn-out component.
Wushu Studios demonstrated strong financial performance despite market turbulence, with expected adjusted revenues around £12.5 million for the year ending August 31.
Keywords’ Growth
Keywords Studios has a history of acquisitions since its listing in 2013. The 2017 acquisition of Runcorn’s D3T marked an early step in their expansive growth strategy.
Since then, Keywords has acquired approximately 100 firms globally, including companies in the USA, Canada, and Australia. This expansion aligns with their slogan, “There is a bit of Keywords in pretty much every video game that you know.”
Future Prospects
Both companies foresee growth opportunities resulting from the acquisition. Wushu will benefit from Keywords’ extensive network and resources.
“Keywords shares our ambitions for growth,” McDermott added. “Their investment will help us continue our people-first approach to development.”
Keywords looks forward to integrating Wushu’s talents and leveraging them to enhance their global client offerings.
Community and Talent Hub
Liverpool has become a key regional hub for gaming talent in the UK. This acquisition enhances the region’s reputation and resource pool.
The deal underscores Liverpool’s significance in the creative sector, providing new opportunities for local talent and strengthening the community.
The acquisition of Wushu Studios by Keywords Studios marks a significant milestone in both companies’ growth.
With strong leadership and a shared vision, the future looks promising for both entities as they continue to innovate in the gaming industry.