Keywords Studios acquires 85% stake in Australian video games developer

Keywords said the move would further its strategy to become the "go-to" technical and creative services platform for the global video games industry, as well as marking its entry into the Australian video games market.

Under the terms of the agreement, Keywords will pay an initial consideration of $30.6m for the stake, comprised of $18.4m in cash from existing resources, the equivalent of $12.2m in new ordinary shares and a deferred consideration of up to $16.2m, in a mix of cash and new ordinary shares, based on performance targets over two years.

The AIM-listed group highlighted that Tantalus had "grown strongly" in recent years, generating adjusted underlying earnings of roughly $6.0m in 2020.

Joint-interim chief executive Jon Hauck said: "Tantalus brings 27 years of experience of video game development in Australia for some of the largest global publishers and leading titles.

"We are delighted to welcome Tantalus to the Keywords Studios family. As our first investment in Australia, we are very excited to work with Tom and his talented team who will bring invaluable expertise and market knowledge as we expand our presence in this attractive and growing region."

As of 0915 GMT, Keywords shares were up 2.32% at 2,380.0p.