Keywords Studios acquires US-based social media agency

30th Mar 2023 08:55

(Sharecast News) - Video game services company Keywords Studios has acquired US-based social media agency Digital Media Management in a deal worth as much as $100.0m.

Keywords Studios said on Thursday that Digital Media Management will join its Engage service line, which brings together experts from its marketing, player Support, and player research units, and will be a "key building block" in accelerating its' vision of offering clients "a holistic marketing solution".

The AIM-listed group will make an initial consideration of $67.5m for DMM, made up of $57.4m in cash and $10.1m in shares on completion, while a maximum deferred contingent consideration of $32.5m will be payable in a mix of cash and new ordinary shares dependant on the future performance of the company over the two years from completion.  

Keywords added that the cash component of the initial consideration will be funded by drawing down on part of its existing €150.0m revolving credit facility.

Chief executive Bertrand Bodson said: "The acquisition of DMM brings Keywords a top tier social marketing agency, world-class production location and capability, as well as a technology platform that can help scale its influencer offering. It extends our capabilities in an increasingly critical area of the marketing landscape, accelerating our progress towards being able to offer a truly holistic solution to our clients' engagement needs.

"With the ever-increasing convergence of entertainment and video gaming, we believe that delivering DMM's social media marketing expertise to our clients will enable them to enhance their engagement with their player base."

As of 0855 BST, Keywords shares were up 2.79% at 2,800.0p.

Reporting by Iain Gilbert at Sharecast.com