Keywords Studios has acquired Gobo, a 170-strong game development powerhouse, in a strategic £26 million deal.
This acquisition bolsters Keywords Studios’ service capabilities and extends its global reach, positioning it as a key player in the game development industry.
Keywords Studios Expands with Strategic Acquisition
Keywords Studios has announced a significant expansion with its acquisition of renowned game developer, Gobo. This strategic move, valued at up to £26 million, sees the Aim-listed powerhouse bring Studio Gobo Ltd and Electric Square Ltd under its wing, enhancing its development services for top-tier video game companies globally.
The acquisition includes Gobo’s three studio locations in Brighton and Hove, further broadening Keywords Studios’ geographic footprint. As part of the purchase arrangement, Keywords Studios has agreed to an initial cash payment of £10.5 million, supplemented by the issuance of 254,529 new shares, thus solidifying its commitment to organic and acquisitive growth in the ever-evolving gaming industry.
Integrating Leading Talent and Expertise
Gobo, founded in 2011 by veterans of the gaming industry, is home to a team of 170 skilled professionals. This acquisition allows Keywords Studios to integrate this rich pool of talent, including software engineers, artists, and game designers, thereby augmenting its capabilities and services offered to global gaming giants.
The infusion of talent is set to significantly bolster Keywords Studios’ already formidable reputation, providing enhanced visibility and control over forthcoming game development projects right from their inception.
Financial Growth and Industry Impact
In recent years, Gobo has demonstrated impressive financial health, with revenues climbing from £6.2 million in 2017 to an estimated £11.6 million in 2018. This growth trajectory underlines the company’s robust market position and potential for further expansion under Keywords Studios’ stewardship.
The collaboration promises mutual benefits, with Tony Beckwith, CEO of Gobo, expressing optimism about leveraging Keywords Studios’ industry position, diverse services, and extensive reach to deliver on ambitious growth objectives.
Expanding Global Reach and Capabilities
With this acquisition, Keywords Studios aims to strengthen its position as a go-to partner for game development across the globe. The company’s strategy focuses on blending its existing resources with Gobo’s expertise to provide comprehensive development solutions to a broader clientele.
The strategic synergy between these entities is expected to drive innovation and expand service offerings, catering to a diverse spectrum of demands within the gaming industry ecosystem.
Future Prospects and Strategic Vision
This acquisition forms part of a broader strategic vision by Keywords Studios to enhance its operational model and client offerings, thus cementing its status as an industry leader. By acquiring Gobo, along with previously acquired entities like Snowed In, Sperasoft, and others, Keywords Studios is aiming to create a robust network of diverse skills and specialisations.
The deal includes stipulations for further payments up to £11 million, contingent on Gobo achieving specific financial targets, further aligning incentives and ensuring a seamless integration process.
Leadership Remarks and Industry Insights
Andrew Day, CEO of Keywords Studios, emphasised the acquisition’s role in expanding the company’s capacity in both scale and expertise, aligning with the studio’s strategic goals. This move is seen as pivotal for enhancing Keywords’ visibility and participation in the development phases of future game releases.
By bringing together a rich tapestry of talents and specialties, the acquisition not only fortifies Keywords Studios’ market position but also reinforces its commitment to delivering top-tier services and solutions to its clients worldwide.
Conclusion
The acquisition of Gobo by Keywords Studios represents a significant milestone in the latter’s strategic expansion journey. This move not only enhances their service portfolio but also strengthens their market position, ensuring sustained growth and innovation in the fast-paced gaming industry.
Through integrating Gobo’s expertise, Keywords Studios is poised to leverage new growth opportunities in the gaming arena.
This acquisition marks a pivotal step in enhancing Keywords Studios’ operational landscape and client service offerings.
