Keywords Studios swallows up Synthesis

Keywords Studios expanded once again through an acquisition on Wednesday, swallowing up Synthesis for a maximum consideration of €18m.

The AIM-traded international technical services provider to the videogames industry said Synthesis Group posted pro forma revenues of €16.9m and profit before tax of €2m for the year to 31 December.

Under the terms of the acquisition - which Keywords expected to be immediately earnings enhancing - the group would pay up to €18m, of which €1m cash is contingent on revenue of at least €15m being achieved in the first 12 months post-acquisition.

Of the initial €17.2m payable, €10.2m was in cash on completion, with the remainder to be satisfied by the right to 2,376,518 new Keywords shares to be issues in two equal tranches on the first and second anniversaries of the acquisition.

Keywords confirmed founders Max and Luca Reynold, as well as the wider leadership team of Synthesis Group, will remain with the business.

"The acquisition of the Synthesis Group represents our largest acquisition to date and, in common with our acquisition in February 2014 of Babel Media, is an important milestone in our consolidation of this highly fragmented market,” said Keywords CEO Andrew Day.

"We are looking forward to working with Max and Luca to continue the growth of Synthesis with the benefit of the scale, broader service offering and enlarged client base of the combined group and to exploiting the best of Synthesis and Keywords for the benefit of all our clients, employees and wider collaborators."