Keywords Studios has agreed to a cash acquisition valued at £2.1 billion, or 2,450p per share, by a newly formed entity backed by private equity firm EQT, CPP Investments, and Rosa Investments.
The offer price represents a 66.7% premium to the closing price on 17 May 2024, the last business day before the offer period began.
The company is the latest London-listed company to be swooped on by private equity firms who see deep value in high-quality shares that aren’t appreciated by public markets.
From a valuation perspective, the deal implies an enterprise value of approximately £2.2 billion. This translates to a multiple of 15.9 times Keywords Studios’ adjusted EBITDA for the year ended 31 December 2023, which stood at £139 million.
The acquisition is structured to be financed through a combination of equity capital from the consortium members and debt financing.
Notably, the offer price is declared as final, with the bidders reserving the right to increase it only under specific circumstances, such as a competing offer emerging.
The Keywords Studios board has unanimously recommended that shareholders vote in favour of the scheme.
