Keywords Studios acquires Mighty Games and completes acquisition of Forgotten Empires as UK gaming company’s sales jump
- Keywords Studios has acquired Mighty Games, it revealed today
- Keywords posted an optimistic trading update and the stock price has risen
Keywords Studios has acquired AI-based testing technology platform Mighty Games in a deal worth up to AUD$10 million (£5.7 million).
The group also told investors in an update on Wednesday that it had completed its acquisition of game development studio Forgotten Empires, costing £25.9 million.
Shares of keywords rose on the update, rising 5.53 percent or 135.60p to 2,587.60p in late morning trading.
Acquisition: Keywords Studios Acquires AI-Based Test Technology Platform Mighty Games
Bertrand Bodson, chief executive of Keywords, said the acquisition of mobile gaming specialist Mighty Games will enable the company “to offer their impressive automated game testing solutions and expertise to our customers, consistent with our strategy of leveraging technology to deliver more.” do for our customers. and remain at the forefront of our industry’.
He added: “Mighty’s talented game development team is strengthening our game development presence in Melbourne and following up on the recent acquisitions of Tantalus and Wicked Witch in Australia.”
Keyworks also released a strong semi-annual trading update today, with sales up 34 percent to approximately €320 million.
Adjusted profit before tax for the first half is expected to be €54 million, up 35 percent from last year and a margin of 17 percent.
The group expects group revenue to increase by approximately 22 percent with strong demand for all its services.
The company is also moving some of its staff and existing operations in Russia, Sperasoft, to locations such as Poland, Serbia, Armenia and Malta.
Bodson said: “Keywords has started the year very strongly, building on the momentum gained in 2021, while continuing to benefit from a renewed focus on content creation after the pandemic and the structural trends towards outsourcing.
“While we are aware of a more uncertain macroeconomic environment and some volatility in the planning of certain projects, we continue to see strong demand for our services.
“Given this and the Group’s strong performance in H1, we are confident that we will deliver a full year performance well above current market expectations, albeit with declining organic growth and margins moving towards historic levels of ~15 percent will go as we invest in the business, move our people and work out of Russia, and as more costs return with the easing of Covid restrictions.”