Keywords Studios (KWS), the supplier of technical services to the video games industry, has acquired Gobo – comprising Studio Gobo Ltd and Electric Square Ltd. This deal, worth up to £26m, should significantly enhance Keywords’ video games development capabilities. The shares shot up as much as 6 per cent on the announcement.
Gobo operates globally, but is based across three studios in Brighton and Hove. Its offering includes full game development; co-development; live operations, such as developing new features and content packages for games; and porting services, whereby Gobo can adapt a game to work on a different platform.
Gobo’s revenues for the year to September 2017 were £6.2m. For the year to July 2018, these reached £11.6m – reflecting accelerating momentum. Its pro-forma cash profits over the same period should come in at around £3.6m.
The acquisition is expected to enhance Keywords’ earnings in its first year of ownership.
