Keywords Studios acquires Seattle-based Hardsuit

11th May 2023 12:24

(Sharecast News) - Video game services provider Keywords Studios announced the acquisition of Hardsuit, a prominent game development studio based in Seattle, on Thursday.

The AIM-traded firm said the move was expected to bolster its technical and creative capabilities in the gaming industry.

Founded in 2015 by Andy Kipling and Russell Nelson, Keywords described Hardsuit as having a "reputable position" in the industry, employing more than 70 skilled professionals providing comprehensive external development, co-development, and porting services.

The studio is known for its proficiency in Unreal Engine, full-stack development services, and multi-SKU, cross-platform execution.

Hardsuit's teams had a proven track record of embracing emerging technologies and platforms while providing support for some of the most renowned global AAA game franchises, the board claimed.

Notable projects in its portfolio included collaborations with Activision on popular titles including Call of Duty and Crash Bandicoot.

Following the acquisition, Andy Kipling and Russell Nelson would continue to lead the business.

Hardsuit, primarily owned by its founders, achieved $11m in revenues in 2022, demonstrating growth and margins aligning with those of the Keywords group.

As part of the agreement, Keywords would make a maximum payment of $15m, with initial consideration consisting of $8.25m - $6.60m of which would be paid in cash, and $1.65m in new ordinary shares to be issued within 30 days of completion.

Additionally, there would be contingent consideration of $6.75m, which would be paid in a combination of cash and new ordinary shares.

The contingent consideration would depend on Hardsuit meeting specified growth targets over the two years following completion.

"Hardsuit is a high-quality studio that works on some of the world's largest franchises, and we are excited to welcome Andy, Russell and their team to Keywords," said chief executive officer Bertrand Bodson.

"The business is a great fit for our 'Create' service line, and strengthens our existing offering for some of the strongest intellectual properties in digital entertainment."

Bodson said Hardsuit would be the company's first game development studio in Seattle, growing its presence in a city home to several existing and potential clients, and giving it access to a quality talent pool from which to drive growth.

"We are looking forward to working with the Hardsuit team and supporting the studio's continuing growth as part of Keywords."

At 1202 BST, shares in Keywords Studios were up 5.5% at 2,300p.

Reporting by Josh White for Sharecast.com.