Keywords Studios has accepted a takeover bid by private equity firm, EQT, for a consideration of £2.1bn.

The video game services firm, which is one of the biggest companies listed on London’s AIM, will receive 2,450 pence a share from EQT.

The offer was the fifth proposal made by the Swedish private equity firm for Keywords in recent months.

Keywords, which provides services to video games such as Fortnite and Assassin’s Creed, said the offer was "reasonable and fair".

The Dublin-based firm added that the acquisition values it at £2.1bn, and implies an enterprise value of approximately £2.2bn, which is approximately 15.9 times Keywords’ adjusted EBITDA for the year to 31 December 2023, which was £139m.

Chief executive officer at Keywords Studios, Bertrand Bodson, said: "This offer from EQT marks an exciting new chapter on our growth journey, with a like-minded partner who possesses deep sector expertise and a desire to accelerate the pace of our growth, both organically and through M&A, to unlock the many opportunities ahead of us across the entertainment landscape.

"I am convinced that together we will be able to strengthen our leadership position at the heart of the largest entertainment industries in the world and build a truly unique global integrated games services platform for the benefit of our people and clients."

Investment director at AJ Bell, Russ Mould, added: "After an extended song and dance, EQT finally stumped up a formal offer for computer games services group Keywords Studios. The target’s board has recommended the deal and if successful, it would conclude 11 years on the market for one of AIM’s biggest success stories.

"Keywords was only worth £49m when it floated in 2013, but the shares subsequently spent many years shooting upwards as it hoovered up all kinds of businesses related to the computer games industry.

"At its peak in 2021, Keywords was valued at £2.5bn, which is quite an ascent from its IPO. The gaming industry has gone through a difficult patch of late, hence why Keywords’ shares suffered from a big pullback in 2023, but EQT has clearly spotted an opportunity to buy a comprehensive entity for a slight discount versus its heyday. Its bid values the group at £2.1bn."

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