Keywords Studios taking over Heavy Iron Studios

Keywords Studios has announced the signing of a conditional agreement to pick up California-headquartered video game developer Heavy Iron Studios.


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The buyer will pay a total consideration of up to USD 13.30 million to purchase the business from current owner Lyle Hall.

Under the terms of the deal, the consideration includes an initial cash sum of USD 4.00 million, followed by a USD 500,000 shares component on the first anniversary of completion.

In addition, an earn-out of up to USD 8.80 million, which will be in the form of cash and shares, may be due at a later date, subject to certain performance-related milestones being achieved in the two years following closing.

Completion of the acquisition remains subject to customary conditions.

Keywords Studios said the acquisition is in line with its aims to become the ‘go to’ technical and creative services platform for the global video games sector.

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The buyer’s chief executive, Andrew Day, stated: The addition of Heavy Iron to the Group further strengthens and scales our Game Development service line.

“By bringing a new base on the West Coast, it will provide access to many of the world’s leading game companies and the local talent pool from where we can expand our activities in the region and build upon our existing presence in audio and localisation.”

Day added that further purchases could be on the cards for the business, saying it has a healthy pipeline of acquisition opportunities, which are currently being reviewed.

His counterpart at the target, Lyle Hall, added: “Keywords’ leading position in the video games industry, its breadth of services, and its geographical reach will strengthen our ability to continue providing outstanding service and support to our partners.”

Heavy Iron was founded in 1999 and now employs 43 developers from its headquarters in Los Angeles.

It is active in full game development, co-development, live operations and porting services for the video games industry.

The company is mainly active in the high-end console and PC games segment and specialises in technical expertise across multiple proprietary engine technologies.

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Revenue for the year to 31st May 2020 stood at USD 5.40 million, while earnings before interest, taxes, depreciation and amortisation for the 12 months totalled USD 1.00 million.

© Zephus Ltd


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