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Video game localisation firm snaps up Grand Theft Auto and Fallout rival for £14m

Global video game localisation firm Keywords Studios plc has announced the acquisition of Swiss rival Synthesis Group for €18m (approx. £14.3m).

The deal, which was announced to the London Stock Exchange this morning, will see the London-registered company acquire 100% of the equity share capital of Synthesis Global Solutions in Milan, Italy and Hamburg.

It will also acquire certain assets and employees from select Synthesis’s operations elsewhere around the globe including France, Japan and Singapore.

In the exact terms of the deal, Keywords are to pay up to €18m (£14.3), with €1m (£797k) dependent upon revenue of at least €15m (£11.9m) in the first 12 months following acquisition. Of the initial €17m (£13.5m), €10.2m (£8.1m) was in cash while the rest will be satisfied with the issuing of new Keywords shares.

Synthesis, who boasted revenues of €16.9m (£13.4m) last year, have worked with a number of high-profile clients in the video game industry, with large franchises such as Need for Speed, Grand Theft Auto and Fallout under their belts.

Andrew Day, Chief Executive at Keywords, said: “The acquisition of the Synthesis Group represents our largest acquisition to date and, in common with our acquisition in February 2014 of Babel Media, is an important milestone in our consolidation of this highly fragmented market.

“Having been long time admirers of Synthesis’ deep relationships with its clients, such as Activision, Bethesda, Disney, Ubisoft and Sony, we are delighted to be joined by such a dedicated and talented team of producers, project managers, audio directors, engineers, translators and testers.”

“We are looking forward to working with Max and Luca to continue the growth of Synthesis with the benefit of the scale, broader service offering and enlarged client base of the combined group and to exploiting the best of Synthesis and Keywords for the benefit of all our clients, employees and wider collaborators.”

Max Reynaud, CEO of Synthesis Group added: “In Keywords, we believe we have a unique opportunity to join with a likeminded team to develop our business and our people and to expand upon the services and delivery centres we can offer to our clients.”