TIDMKWS
RNS Number : 1935K
Keywords Studios PLC
09 April 2018
9 April 2018
Keywords Studios plc ("Keywords", "the Group")
Acquisitions of Cord Worldwide Limited and Laced Music Limited
from Cutting Edge Group
Acquisition of Maximal Studio
Extending the Group's Audio services line; adding Music Services
and Audio services in Brazil
Acquisitions of Cord Worldwide Limited and Laced Music
Limited
Keywords Studios, the international technical services provider
to the global video games industry, today announces that it has
acquired Cord Worldwide Limited ("Cord") and Laced Music Limited
("Laced") for a total consideration of GBP4.5m from the Cutting
Edge Group ("Cutting Edge").
Based in London, Cord provides a range of music focused branding
and strategic consulting services to large businesses including
Shell, Lego and BT and Laced is a music services company and record
label specialising within the video games industry.
The acquisitions of Cord and Laced are in line with Keywords'
strategy to grow organically and by acquisition as it selectively
consolidates the highly fragmented market for video game services.
The companies will bring additional talent, expertise and music
industry experience to Keywords' client base. Laced and Cord will
continue to collaborate with Cutting Edge, and will be able to take
the extensive catalogue of media music rights that Cutting Edge own
to Keywords' global client base of video game developers and
publishers. Being able to offer music services to our clients will
further enhance our reputation as the leading provider of services
to the global video games industry.
Cord and Laced generated combined revenue of GBP6.5m and EBITDA
of GBP675,000 in the year ended 30 June 2017.
Under the terms of the acquisition Keywords paid cash
consideration of GBP3.375m on completion and will issue 73,744 in
shares two years after the acquisition.
Acquisition of Maximal Studio
On 22(nd) March 2018, Keywords acquired Maximal Studio
("Maximal"), an audio studio in Sao Paulo which provides voice over
recording for the video games and learning industries (e.g.
e-books) for an initial cash consideration of EUR0.3m, with up to
EUR0.2m of deferred consideration due over the following two years,
subject to its performance.
The acquisition adds further scale to our audio capabilities in
the South American markets, providing us with our first recording
studio in Sao Paulo to complement our localisation business in
Rio.
Andrew Day, CEO of Keywords Studios commented:
"Thus far, our Audio service line has specialised entirely on
voice over production for video games, yet video games
publishers/developers are major buyers of specifically composed or
licensed music for use in games, are increasingly focussed on using
music assets as part of their brand or franchise identity and are
becoming more sophisticated about how they buy and manage their
music assets.
"We are, therefore, delighted that we will be able to add
further value to our games clients through Laced's specialism in
licencing video game soundtracks for game companies and from music
composers, and Cord's expertise in music composition, rights
management, music strategy consulting and audio branding.
"We also see a clear opportunity to bring our localisation,
voice over and trailer creation capabilities to Cord's broader
client base of leading brands.
"We look forward to welcoming the talented and passionate teams
of Cord and Laced to the Keywords family and to developing further
the synergies that we have already proven through working
collaboratively on recent projects."
Daniel Jackson, CEO of Cord commented:
"The opportunity to add a brand new Music capability within the
Keywords Studios platform is very exciting for us. Keyword's
clients will now be able to use the full power of music to connect
with players; linking in-game experiences to trailers, merchandise
and live events. With CORD's focus on music strategies, we hope to
change the way music is created, owned and leveraged within the
gaming industry."
Danny Kelleher, Managing Director of Laced commented:
"We are thrilled to join Keywords and look forward to working
alongside their studios all over the world and the new
opportunities that will bring us. The services that we currently
offer to games developers such as music strategy and supervision,
talent and brand partnerships will now be available to Keywords
extensive client list. The Laced Records label will continue to
grow and offer the most exciting gaming soundtracks catalogue
available."
For further information, please contact:
Keywords Studios (www.keywordsstudios.com)
Andrew Day, Chief Executive
Officer
David Broderick, Chief Financial
Officer +353 190 22 730
Numis (Financial Adviser)
Stuart Skinner / Kevin Cruickshank
(Nominated Adviser)
James Black / Tom Ballard
(Corporate Broker) 020 7260 1000
MHP Communications (Financial 020 3128 8100
PR) keywords@mhpc.com
Katie Hunt / Ollie Hoare
About Keywords Studios (www.keywordsstudios.com)
Keywords Studios is an international technical services provider
to the global video games industry. Established in 1998, and now
with over 40 facilities in 20 countries strategically located in
Asia, the Americas and Europe, it provides integrated art creation,
software engineering, testing, localisation, audio and customer
care services across more than 50 languages and 16 games platforms
to a blue-chip client base of approximately 650 clients across the
globe. It has a strong market position, providing services to 23 of
the top 25 most prominent games companies, including Activision
Blizzard, Bandai Namco, Bethesda, Electronic Arts, Konami, Riot
Games, Sony, Square Enix, Supercell, TakeTwo, and Ubisoft. Recent
titles worked on include Uncharted 4: A Thief's End, Call of Duty:
WWII, Mortal Combat X, Assassin's Creed Origins, Battlefield 1,
League of Legends, Fortnite, Clash Royale, and Mobile Strike.
Keywords Studios is listed on AIM, the London Stock Exchange
regulated market (KWS.L).
About Cord Worldwide (www.cordww.com)
Established in 2009, CORD is a music agency working in branding
and advertising. CORD's services include music strategy,
supervision, composition, sonic branding and talent management.
From our offices in London, Madrid and Warsaw we service clients
including LEGO, BT, VISA, Santander and Mr Porter.
About Laced Music (www.lacedrecords.com)
Established in 2015, Laced is a music services company and
record label working within the video games industry. Laced provide
music strategy, supervision and talent partnerships. We work with
some of the most exciting developers and publishers to ensure their
game's music connects with players and creates an unforgettable
experience. Laced Records license, manufacture and release some of
the best video game soundtracks worldwide with a focus on premium
vinyl collector box-sets.
About Maximal Studio (www.maximalstudio.com.br)
Founded in 2011, by audio production veterans, Maximal provides
high quality audio services for the localisation of video games in
Brazilian Portuguese as well as other recording and sound design
services. It has worked on over 100 video games titles, with a
focus on AAA games such as Rise of the Tomb Raider, Halo 5
Guardians, and Epic's Paragon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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