Now video game giant is buyout target: £2bn deal for London-listed firm

A video game firm has become the latest London-listed company to be targeted by foreign buyers.

Keywords Studios yesterday said it would accept a £2billion offer from Swedish buyout giant EQT.

A deal would see the Aim-listed firm leave London’s stock market amid a takeover ‘feeding frenzy’.

Shares in Keywords, one of the largest firms on London’s junior stock market, soared 55.2 per cent, or 812p, to 2282p, after the announcement.

Keywords was founded in Ireland in 1998 and now has more than 70 studios across the world, employing around 12,000 people.

The company provides services to the developers of video games including Fortnite and Call of Duty.

The latest 2550p per share offer follows four approaches by EQT which were rejected by the board.

Keywords, which has its headquarters in Dublin, said it is in advanced discussions with EQT and is ‘minded to recommend’ the bid. 

EQT has until June 15 to make a firm offer, which would then be put to a shareholder vote, or to walk away.

Keywords said: ‘The board remains confident in the growth strategy of building the only truly global platform providing solutions to the video games and entertainment industries, both organically and through acquisitions, and EQT is supportive of this strategy.’

Keywords is the latest London-listed company to be targeted by foreign buyers this year, with the value of offers from overseas bidders topping £60billion.

It comes after Royal Mail owner International Distributions Services accepted a £3.5billion bid from Czech billionaire Daniel Kretinsky in a move that shocked the City and Westminster.

Cyber-security group Darktrace has backed a £4.2billion offer by US private equity firm Thoma Bravo. 

And miner Anglo American has rejected two bids from Australian rival BHP, while Wood Group, Currys and Direct Line have rebuffed overseas offers.

Meanwhile, gambling group Flutter and travel agent Tui have both abandoned the exchange to list overseas. 

Alongside the exodus, there are also concerns about the lack of companies joining the London Stock Exchange through initial public offerings (IPOs).

The City was dealt a major blow when Cambridge chipmaker Arm decided to float on Wall Street last year.

A City analyst has warned that the London market was facing a ‘death by a thousand cuts’. Another has said it is the target of a takeover ‘feeding frenzy’, as buyers swoop on undervalued firms.