EQT in talks to buy game services company Keywords Studios for £2.2b billion

EUROPEAN private equity group EQT is in advanced discussions to buy Dublin-based video game services company Keywords Studios for £2.2 billion (S$3.8 billion), the companies said in a statement.

EQT is negotiating over a possible cash offer of £25.50 per share of London-listed Keywords, the statement said. This offer represents a premium of about 73 per cent over Keywords’ closing share price of £14.70 on Friday.

EQT had previously made four unsolicited proposals for Keywords, all of which were rejected by the company’s board, the statement said. The current offer represents a significant increase from the initial proposal, it added.

After careful evaluation with its financial advisers, the Keywords board concluded that it “would be minded to recommend” the proposal to the company’s shareholders, the statement said.

Under Britain’s takeover rules, EQT has until Jun 15 to either make a firm offer or walk away.

Established in 1998, Keywords Studios is a global provider of creative and technology-enabled solutions to the video games and entertainment industries and now has over 70 facilities in 26 countries.