EQT Group in Advanced Talks to Acquire Keywords Studios Plc
EQT Group in Advanced Talks to Acquire Keywords Studios Plc for £2 Billion
EQT Group is currently in advanced negotiations to acquire Keywords Studios Plc at a rate of £25.50 per share, marking a deal valued at over £2 billion. The bid, coming after Keywords' dismissal of four previous unsolicited proposals from EQT, represents a substantial 73.5% premium on Keywords' closing price of £14.70 per share on May 17. Keywords' board is inclined to advocate for the proposal to its shareholders, with EQT having until June 15 to make a firm offer or withdraw. This move underscores the growing interest of foreign investors in London-listed tech firms, following Thoma Bravo's recent acquisition of UK cybersecurity group Darktrace Plc.
Key Takeaways
- EQT Group is in advanced discussions to acquire Keywords Studios Plc for £25.50 per share, with a valuation exceeding £2 billion.
- Keywords' board had previously rejected four unsolicited proposals from EQT; the new offer signifies a substantial increase.
- The offer represents a remarkable 73.5% premium over Keywords' closing price on May 17, 2024.
- Keywords' board is considering recommending EQT's proposal to its shareholders.
- This deal highlights the keen interest of foreign entities in London-listed tech firms, underpinning the growth of the UK tech sector.
- Thoma Bravo recently agreed to acquire UK cybersecurity group Darktrace Plc for $5.32 billion.
Analysis
The potential acquisition of Keywords Studios by EQT Group for £25.50 per share reflects the escalating interest of foreign investors in London's tech landscape, following Thoma Bravo's acquisition of Darktrace. This particular deal, offering a 73.5% premium, underscores EQT's determination to expand within the tech industry, potentially driving up share prices of comparable London-listed firms. However, it may also encounter scrutiny from UK regulators, impacting the timeline and outcome. In the long term, this acquisition could spur additional foreign investment in the UK tech sector, fostering growth and competition. Meanwhile, Keywords' shareholders, EQT, and the tech industry as a whole are likely to experience significant impacts from this deal.
Did You Know?
- EQT Group: One of the foremost investment firms based in Sweden, recognized for its private equity, real estate, and venture capital investments. EQT focuses on collaborating with robust management teams and creating sustainable value in companies across various sectors, including technology.
- Keywords Studios Plc: A London-based, publicly-traded (AIM market) company that offers outsourced services to the video game industry, such as game development, testing, localization, and customer support. Keywords possesses a global presence, working with some of the largest game developers and publishers worldwide.
- £25.50 per share, £2 billion valuation: EQT Group's offer to acquire Keywords Studios Plc for £25.50 per share implies a valuation surpassing £2 billion (approximately $2.5 billion USD). This offer represents a noteworthy 73.5% premium over Keywords' closing price on May 17, 2024, making it a significantly higher offer compared to the previous unsolicited proposals that Keywords had rebuffed from EQT.