Keywords Studios acquires firm behind Forgotten Empires game for €30m

Dublin-founded video games services provider Keywords Studios has agreed to acquire development studio Forgotten Empires in a deal worth up to $32.5 million (€30.4 million).

The company also issued a trading update for the current year, saying it had made a positive start to the year with strong organic revenue growth. Keywords expects full-year performance to be in line with current expectations.

The acquisition of Forgotten Empires is in line with the group’s ambition to become the technical and creative services platform of choice for the global video games industry. The Ohio-based studio, which was founded in 2013 by Ryan Shepherd, specialises in the development of real-time strategy games, including Age of Empires. It employs 53 game developers.

In 2021, Forgotten Empires generated revenue of $7.2 million, with expectations for strong growth in 2022. Keywords Studios will pay an initial cash consideration of $15.75 million, with the equivalent of $3.75 million in new ordinary shares to be issued one year after completion depending on certain targets being met, and up to $13 million, in a mix of cash and new ordinary shares over the year following completion, subject to the company meeting targets.

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“We are very excited to welcome Ryan and the Forgotten Empires team to Keywords. The studio has been instrumental in helping to create, design and grow the hugely successful and expanding Age of Empires series. Forgotten Empires’ talented team brings experience and expertise particularly in real-time strategy games and will be a great addition to our client offering and game development capability,” said Bertrand Bodson, chief executive of Keywords Studios. “Forgotten Empires’ strong track record of attracting and retaining talent globally is a testament to Ryan, his team and the high quality of the work that the studio produces.”

Forgotten Empires has worked with some of Keywords’ other games development studios, including Tantalus, Wicked Witch and Climax Studios.

“We are delighted to join Keywords Studios, an industry-leading, fast-growing business with a global footprint,” Mr Shepherd said. “We are really excited that they share our ambition and will provide the support to enable and underpin our continuing growth. Having worked alongside some of Keywords’ development studios, we know the cultural fit will work well and we look forward to working more closely together with the wider Keywords’ group to drive the combined business forward.”

Keywords is holding a capital markets day to update investors on strategic priorities and investment plans as it plans to drive sustainable growth. The group said it made a positive start to the year and was confident that the performance for the full year would be in line with current expectations. “Keywords remains well-funded to deliver on its organic growth and acquisition strategy, with the acquisition of Forgotten Empires announced separately this morning,” the group said in a statement.