? Acquisition
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Ireland-based technical & creative gaming services provider Keywords Studios (LON: KWS) has acquired London-based creative gaming marketing agency Maverick Media Limited for purchase price of up to $4.76m
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The total consideration includes
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Upfront payment of $3.17m in cash and $0.4m in new shares
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Post-completion conditional payment of $1.19m payable in mix of cash and shares
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As reported by Proactive Investors, Maverick has annual revenue of $4.5m and adjusted EBITDA of $1.32m for the financial year ended May 31, 2020. Therefore, the valuation multiples are EV/Rev 1.2x, EV/EBITDA 3.6x
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This is the second acquisition performed by Keywords Studios after $122m public offering in May 2020
? Previous Acquisitions
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In June 2020, the company acquired UK-based provider of specialized game development services provider Coconut Lizards for $2.5m
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In 2019, Keywords Studios made 9 acquisitions (Sunny Side Up, AppSecTest, GetSocial, Wizcorp, Descriptive Video Works, TV+SYNCHRON, Ichi, Syllabes, Kantan) for a total amount of $25.8m
? InvestGame Notes
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Keywords Studios is an active buyer and still holds plenty of cash on its accounts. As reported by Group, it had net cash of €101m and €100m of undrawn committed revolving credit facility as of 30 June 2020
? Services
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Maverick Media is a games creative agency, that helps gaming companies to position their products at the marking through the following services
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leading of advertising campaigns
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branding and development of advertising strategies
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creation of promos and trailers
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acquisition of celebrities and influencers
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creation of live action animation
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other services
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Among the company’s clients are such games publishers and developers as: Bandai Namco, Ubisoft, Capcom, Microsoft, Activision Blizzard, EA, SEGA, Nintendo and others
SOURCES: KEYWORDS, PROACTIVEINVESTORS
