Member Article

Keywords Studios has acquired a graphics firm that's worked with Tencent and Capcom

Global video game services company, Keywords Studios, has acquired a Far Eastern graphical assets firm that has worked with industry heavyweights including Tencent, Capcom and Sony.

Red Hot CG, which has its base in Shanghai, has been acquired for a total consideration of $6m and will operate under Keywords’ Art Service Line, swelling its pool of artists to over 1000 once the acquisition is complete.

Founded in 2010 by Chief Executive Daniel Staton, Red Hot produces graphical art assets for video games and has offices in Chengdu, Dalian and Zhengzhou in China, and Yogyakarta in Indonesia.

For Keywords, which has a significant presence in London, the acquisition will give the company more ready access to the Chinese pool of art talent.

Andrew Day, Chief Executive of Keywords, commented: “The acquisition of Red Hot further strengthens our fast growing, higher margin art services business, enhancing our unique client proposition which combines operations close to our clients, in the US and Canada, with those in lower cost locations across Asia.”

The current senior management team at Red Hot will continue to run the firm following the acquisition, with Staton along with COO Leo Ling and CRO Claas Grimm staying on with the business.

Daniel Staton, Chief Executive Officer of Red Hot Studios added: “We are delighted to be joining the Keywords Group as we continue to grow our business.

“We believe that combining forces with Keywords’ Mindwalk studio in China as well as leveraging the overall resources of the wider Keywords Group will enable us to accelerate our development and provide wider opportunities to all members of the Red Hot team.”