Acquisitive Irish video game firm Keywords Studios has added Liverpool’s Wushu Studios to its portfolio.
Game development studio Wushu employs approximately 160 people and works on high-profile games such as Fall Guys, State of Decay, Forza Horizon 5, and Baldur’s Gate 3.
The studio provides a range of services, including co-development, full development, porting and remastering, and live support services.
Wushu’s founder, Alan McDermott, and the management team will continue to lead the company post-acquisition.
“We are thrilled to welcome Wushu to Keywords, stated Bertrand Bodson, chief executive of Keywords Studios. “The acquisition aligns with our strategy to build out our game development offer globally.
“We now have two studios in Liverpool which is a key regional hub for talent in the UK. Wushu’s highly skilled team, strong relationships and opportunities for growth will be important assets that complement our existing Create studios as we continue to enhance our offering to our global client base.
“We look forward to working with Alan and the talented team over the coming years to support and drive growth in the business.”
McDermott, founder of Wushu, added: “This is an exciting new chapter for Wushu. Joining Keywords allows us to maintain our creative independence while gaining access to a wealth of resources and expertise.
“It allows us to further enhance the services we offer our long-term clients with an extensive resource network and broad skillsets. Keywords shares our ambitions for continued growth, and their investment in Wushu will help us continue to remain faithful to our people-first approach to development.”
The acquisition was funded through Keywords’ existing revolving credit facility, with the consideration consisting of an upfront and earn-out component.
Wushu’s financial performance has been strong despite market turbulence, with adjusted revenues expected to reach approximately £12.5 million in the year ending August 31.
AIM-listed Keywords has been on a run of acquisitions since it listed in 2013, with the £3m, 2017 acquisition of Runcorn’s D3T joining a list of around 100 global buyouts including firms in the USA, Canada and Australia, hence the firm’s slogan: “There is a bit of Keywords in pretty much every video game that you know.”
