Keywords Studios has acquired Liverpool-based game development studio, Wushu Studios, for an undisclosed amount.

Wushu was founded in 2017, initially as an original IP studio, before transitioning to a work-for-hire model. It now provides a range of services to publishers and developments on co-development and full development projects.

It employs around 160 people and has worked on recent titles such as Fall Guys, Forza Horizon 5 and State of Decay.

Wushu is expected to reach an adjusted revenue of approximately £12.5m in the year to 31 August, while its EBITDA margin is set to be in line with expectations.

Keyword said that the consideration comprises an upfront and earn-out component and is expected to fall within the group’s targeted valuation range.

The consideration was paid in cash and was funded from Keywords’ existing revolving credit facility.

Chief executive officer at Keywords, Bertrand Bodson, said: "The acquisition aligns with our strategy to build out our game development offer globally. We now have two studios in Liverpool which is a key regional hub for talent in the UK.

"Wushu's highly skilled team, strong relationships and opportunities for growth will be important assets that complement our existing Create studios as we continue to enhance our offering to our global client base. We look forward to working with Alan and the talented team over the coming years to support and drive growth in the business."

Wushu founder, Alan McDermott, added: "Joining Keywords allows us to maintain our creative independence while gaining access to a wealth of resources and expertise. It allows us to further enhance the services we offer our long-term clients with an extensive resource network and broad skillsets.

"Keywords shares our ambitions for continued growth, and its investment in Wushu will help us continue to remain faithful to our people-first approach to development. We look forward to collaborating with the broader Keywords network and taking on ever more ambitious projects in the future."

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