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Keywords Studios Acquires US Marketing Services Provider g-Net Media
Monday 30 November 2020

Irish video games industry technical services provider Keywords Studios plc (LSE: KWS) has entered into an agreement to acquire the entire issued share capital of g-Net Media, Inc, a Los Angeles based provider of marketing services to the video games and entertainment industries, for a total consideration of up to USD 32m, the group said.

The acquisition will further the group's strategy to become the 'go to' technical and creative services platform for the global video games industry.

Founded in 2001 and led by John Rosenberg, David Getson and David Moodie, gnet is a studio providing creative and strategic marketing services for games publishers.

gnet's team of 85-staff supported by a wide network of local and international experts, are proud to work on such iconic franchises as Call of Duty, Fallout, Gears of War, and Destiny.

For the year ended 31 May 2020, gnet generated unaudited net revenues of USD 16.3m and adjusted EBITDA of USD 2.2m, and for the calendar year to 31st December 2021, revenues are expected to be around USD 20m and EBITDA around USD 3m.

Under the terms of the acquisition, Keywords will pay initial consideration of USD 14.4m in cash and the equivalent of USD 3.6m in new ordinary shares to the sellers on the first anniversary of the acquisition, which will then be subject to orderly market provisions for a further year.

Deferred consideration of up to USD 14m will be payable to the sellers, in a mix of cash and shares, based on performance targets being met by the first and second anniversaries of the acquisition.

Keywords Studios is an international technical services provider to the global video games industry.

Established in 1998, and now with 63 facilities in 21 countries strategically located in Asia, the Americas and Europe, it provides integrated art creation, marketing services, software engineering, testing, localization, audio and customer care services across more than 50 languages and 16 games platforms to a blue-chip client base of over 950 clients across the globe.
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Date Published: 30/11/2020

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