Weekly News Digest #43

$2.8B Private Takeover of Keywords is Officially Completed

Sweden-based private equity firm EQT, together with Canada Pension Plan Investment Board (CPP Investments) and Temasek, have completed the acquisition of UK-based outsourcing company Keywords Studios (LON: KWS) for approximately $2.8B (£2.2B).

The proposed offer of £25.50 per share represents a substantial premium of approximately 73% over Keywords’ closing share price of £14.70 May 17, 2024.

In 2023, the studio generated $844m (€780m) in Revenue and $139m (€109m) in EBITDA, representing the multiples of 3.3x EV/Revenue and 20.1x EV/EBITDA.

You can read more about this acquisition in our analysis of the deal.

The company’s revenue grew 48.76x over ten years, and a huge role in this growth played Keywords’ active M&A strategy. Even one week before being acquired, the studio closed another deal, buying Certain Affinity — a third-party developer that worked on Call of Duty and Halo franchises, among many others.

If you want to have a look at all the studios acquired by Keywords since 2020, the exclusive table is already there for our Patreon subscribers. Join today to support InvestGame and get more of the data in the future!

We thank MY.GAMES and Xsolla for supporting this digest.

VENTURE FINANCING

US-based web3 gaming platform Party Icons has raised $9m in a funding round led by BITKRAFT Ventures, with participation from IDG Capital, Gam3Girl Ventures, Yield Guild Games, and other investors. The funds will accelerate the development of the company’s “Party-as-a-Service” platform. This funding round brings the company’s total raised funds to $20m. The platform offers users mobile extraction shooters with web3 elements.

France-based fantasy sports game developer Fungiball has secured $2.37m (€2.2m) in a pre-Seed funding round from Cliff Capital, BPI France, and angel investors. The funds will support scaling the company’s tech team and improving its platform. Fungiball is developing a fantasy tennis platform that allows players to trade and exchange cards with tennis players.

US-based web3 games developer Opti Games has secured $2m in a funding round from L1D, with participation from Monad, CMS Holdings, Impossible Finance, and Yield Guild Games (YGG). The funds will support the growth of Sparkball, a team shooter with sports elements that has been in development for nine years and is set for release in Q2’25.

US-based mobile games developer Antihero Studios has secured an undisclosed sum in a pre-Seed funding round led by Sisu Game Ventures. The funds will support the development of new titles. The studio, led by a former Supercell senior game designer, ex-Supercell creative director, and a King veteran, will focus on developing mobile multiplayer titles.

Hong Kong-based web3 games developer Chronic Games has secured undisclosed funding from SKALE Labs. The funds will support the adoption of the company’s title, Cannaverse, on SKALE’s blockchain network. The game offers users a web3 collectible experience with cannabis-themed NFTs.

PUBLIC OFFERINGS

India-based digital gaming and esports company Nazara Technologies (NSE: NAZARA) has secured $26.5m (₹220 crore) by issuing 2.31 million equity shares to SBI Mutual Fund. The funds will support the company’s expansion in mobile gaming, esports, and gamified learning. This investment follows a $108m (₹900 crore) fundraising approved in Sep’24, aimed at M&A activities. Nazara’s most recent acquisition was Absolute Sports for $17.4m in Sep’24.

US-based competitive video game and esports organization Super League Gaming (NASDAQ: SLGG) has secured a $1m direct investment from US-based web3 metaverse experience company Infinite Reality. This deal is part of the companies’ partnership. The investment follows Infinite Reality’s acquisition of a 9.9% stake, with an option to acquire an additional 75% in Super League Gaming at the beginning of Oct’24. It also continues Infinite Reality’s recent acquisition streak, including its acquisition of LandVault in Jul’24.