Keywords Studios acquires UK-based outfit Climax Studios

Keywords stated the acquisition would bring "significant additional scale" to its largest service line, game development, and further its strategy to become the "go to" technical and creative services platform for the global video games industry.

Under the terms of the acquisition, the AIM-listed group will pay a maximum consideration of up to £43.0m, comprised of an initial consideration of £20.2m in cash and the equivalent of £6.8m in new ordinary shares. Deferred consideration of up to £16.0m, in a mix of cash and new ordinary shares, will also be payable based on growth targets being met over the year following completion.

Joint interim chief executive Jon Hauck said: "We are delighted that Simon and the highly talented Climax team are joining the Keywords family. Climax brings a wealth of expertise, adds significant scale to our rapidly growing Game Development Service Line, and provides access to a new pool of talent from its base in Portsmouth."

"The studio's excellent track record of high-quality delivery spans over 30 years, with its services in high demand from some of the largest names in the industry. We are very excited about the experience and opportunities that Climax will bring to Keywords, and our clients, and we look forward to enabling their continued growth as part of the group."

As of 0940 BST, Keywords shares were up 2.71% at 2,958.0p.