27 August 2020

Keywords Studios plc ("Keywords Studios", "the Group")

     Acquisition of Maverick Media Limited

Building our Marketing Services

Keywords Studios, the international technical and creative services provider to the global video games industry, today announces the acquisition of Maverick Media Limited ("Maverick"), a video games creative marketing agency, for an amount of up to £3.6m. The acquisition furthers the Group's strategy to become the 'go to' technical and creative services platform for the global video games industry.

Maverick, founded in 1995, is one of the longest established video game creative agencies in Europe.  Based in Clerkenwell, London, the studio, with a staff of 16, produces marketing campaigns and related services for some of the world's leading games publishers, developers and brands. With little client overlap with Keywords Studios' other marketing studios, Maverick will further extend Keywords' client relationships in the growing marketing services business which now comprises 6 studios.

Maverick has an impressive track record in TV commercial and live action projects in addition to its video game trailers, key art and social media work.  These strengths broaden and deepen Keywords Studios' range of marketing services and will benefit the Group's wider client base.

For the year ended 31^st May 2020, Maverick generated revenues of over £3.4m and adjusted EBITDA of approximately £1.0m and is growing despite the challenges of Covid.

Keywords Studios will pay non-contingent consideration of £2.7m, comprising £2.4m in cash and the remainder through the issue of 13,579 new ordinary shares to the sellers on the first anniversary of completion.  The remaining consideration of up to £0.9m will become payable to the sellers, in a mixture of cash and up to 22,632 shares, based upon performance targets over the first six months post completion.

Andrew Day, CEO of Keywords Studios commented:

"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.

This is the second acquisition to complete following our recent £100m placing and we have a healthy pipeline of further acquisition opportunities which we are reviewing and advancing."

For further information, please contact:

About Keywords Studios (www.keywordsstudios.com)

Keywords Studios is an international technical services provider to the global video games industry. Established in 1998, and now with 61 facilities in 21 countries strategically located in Asia, the Americas and Europe, it provides integrated art creation, marketing services, software engineering, testing, localization, audio and customer care services across more than 50 languages and 16 games platforms to a blue-chip client base of over 950 clients across the globe. 

Keywords Studios has a strong market position, providing services to 23 of the top 25 most prominent games companies, including Activision Blizzard, Bandai Namco, Bethesda, Electronic Arts, Konami, Microsoft, Riot Games, Square Enix, Supercell, TakeTwo, Epic Games and Ubisoft. Recent titles worked on include Call of Duty: Black Ops 4, Mortal Combat X, Assassin's Creed Odyssey, Borderlands 3, League of Legends, Fortnite, Clash Royale and Rainbow Six Siege. Keywords Studios is listed on AIM, the London Stock Exchange regulated market (KWS.L).

About Maverick (www.maverickmedia.co.uk)

Founded in 1995, Maverick is an award-winning video games creative agency that devises campaigns for the world's foremost video games publishers, developers and brands.  Maverick has a team of sixteen people based in London and Montreal.  Maverick's clients include Bandai Namco, Pokémon, Wooga, Zynga, Koch Media, D3, Marmalade and Square Enix.