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Keywords Studios confirms possible cash takeover, shares soar

Keywords Studios, a leading provider of services to the video games and entertainment industries, announced today that it is in advanced talks regarding a potential £1.4bn cash takeover offer from EQT, a global investment firm.

According to the company, EQT has proposed a cash offer of 2,550p per share to acquire the entire issued and outstanding share capital of Keywords Studios. This represents a significant premium over the company’s closing share price of 1,722p on Friday.

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Keywords Studios shares were 63% higher at 2,405p at the time of writing on Monday.

The potential 2,550p offer follows four previous unsolicited proposals from EQT over recent months that were rejected by the Keywords Studios board. However, the board has now indicated it would be “minded to recommend” the latest proposal to shareholders if a firm intention to make an offer is announced on those financial terms.

The Dublin-based company provides a range of technical services for video game developers and publishers, including art creation, software engineering, audio production, gameplay testing and player support.

In a statement released on the market on Monday, Keywords Studios said its board “remains confident” in the company’s growth strategy and that EQT is “supportive of this strategy” to build a global platform serving the video games and entertainment industries through organic growth and acquisitions.

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