The video game development services group said London-based Maverick had “little client overlap” with its other marketing studios, and as a result, the purchase will “further extend” its client relationships in the firm’s growing marketing services arm.
Keywords added that Maverick’s “impressive track record” in TV commercials, live-action projects, video game trailers, key art and social media work will deepen its own range of marketing services and benefit its wider client base.
In what is the second acquisition following May’s £100mln placing, the group will pay £2.4mln in cash alongside 13,579 new shares to the sellers for a combined £2.7mln of the purchase price. The remaining £900,000 will become payable in a mix of cash and up to 22,632 shares based on performance targets over the first six months post-completion of the acquisition.
For the year ended May 31, 2020, Maverick generated revenues of over £3.4mln and adjusted earnings (EBITDA) of around £1mln, with Keywords saying the firm was growing despite the challenges of coronavirus.
“We are delighted that Maverick and its talented team are joining Keywords Studios. Maverick is a strong brand with a 25-year body of work in servicing video games publishers and developers and has grown successfully with the industry. We are excited about the expertise that Maverick will bring to our wider marketing business and ultimately to our client base across the group”, said Keywords chief executive Andrew Day.
He added that Keywords still had a “healthy pipeline of further acquisition opportunities” which the board is “reviewing and advancing”.
Shares rose 2% to 2,286p on Thursday morning, up more than 47% so far in 2020.