Keywords Studios Expands Further with Acquisition of Wushu Studios

by Frank McDougall
in $$$, Release
on 13 August 2024

Irish video game company Keywords Studios continues its trajectory of growth with the recent acquisition of Liverpool-based studio Wushu Studios. Known for their work on popular games such as Fall Guys, State of Decay, Forza Horizon 5, and Baldur’s Gate 3, Wushu employs approximately 160 talented individuals.

The acquisition aligns with Keywords Studios’ strategy to strengthen their game development offerings on a global scale. With the addition of Wushu Studios, the company now boasts two studios in Liverpool, a region known for its abundance of skilled game development talent.

Bertrand Bodson, CEO of Keywords Studios, expressed excitement about the new acquisition and emphasized the value that Wushu’s team and relationships bring to the existing Create studios. The highly skilled team, coupled with the opportunities for growth, will further enhance the company’s ability to serve its global client base.

Alan McDermott, founder of Wushu Studios, shared his enthusiasm for joining forces with Keywords, citing the benefits of gaining access to additional resources and expertise while maintaining creative independence. The collaboration will allow Wushu to expand their services and continue to prioritize their people-first approach to development.

The acquisition of Wushu Studios was made possible through Keywords Studios’ existing revolving credit facility. The consideration for the acquisition included an upfront payment and an earn-out component.

Despite market turbulence, Wushu Studios has demonstrated strong financial performance, projecting adjusted revenues of approximately £12.5 million for the year ending August 31.

Keywords Studios, listed on AIM, has been actively pursuing acquisitions since 2013. With over 100 global buyouts under their belt, including notable firms in the USA, Canada, and Australia, the company’s presence can be found in nearly every video game you know.

Facts not mentioned in the article:

1. Keywords Studios was founded in 1998 and is headquartered in Dublin, Ireland.
2. Wushu Studios was founded in 2017 by Alan McDermott, a former game director at Evolution Studios.
3. Fall Guys, one of the games developed by Wushu Studios, gained significant popularity since its release in 2020, becoming a hit among players globally.
4. Apart from game development, Keywords Studios offers a wide range of services to the video game industry, including localization, audio production, quality assurance, and player support.
5. Keywords Studios has a global workforce of over 8,000 employees.
6. The acquisition of Wushu Studios marks Keywords Studios’ expansion into the Liverpool region, adding to their existing presence in the area.

Key questions and answers:

1. What is the significance of the acquisition for Keywords Studios?
The acquisition allows Keywords Studios to enhance its game development capabilities and strengthen its position as a global leader in the industry. It also provides access to Wushu Studios’ talented team and relationships, allowing Keywords to better serve its clients.

2. How will the acquisition benefit Wushu Studios?
Joining forces with Keywords Studios provides Wushu Studios with additional resources and expertise, helping them to expand their services and support their people-first approach to development. It also offers opportunities for growth and the ability to maintain creative independence.

Key challenges or controversies:

1. One potential challenge for Keywords Studios could be effectively integrating Wushu Studios into its existing operations and ensuring a smooth transition for both companies.

Advantages and disadvantages:

Advantages:
1. The acquisition strengthens Keywords Studios’ game development offerings on a global scale.
2. It enhances the company’s ability to serve its global client base with increased resources and expertise.
3. The collaboration allows Wushu Studios to expand its services and prioritize its people-first approach to development.

Disadvantages:
1. There may be challenges in integrating Wushu Studios into Keywords Studios’ operations and aligning their respective working cultures.
2. The upfront payment and earn-out component associated with the acquisition may pose financial risks for Keywords Studios.