Keywords Studios has released an update on its potential £2.1bn acquisition by the private equity firm, EQT, stating that the offer would be "minded to recommended" to shareholders.

The London-listed Dublin-based video games services firm said that it received a fifth offer by the private equity firm of 2450 pence per share, which marks a small decrease from the fourth proposal in May.

The firm, which serves clients such as Activision Blizzard, Electronic Arts and Tencent, said that it had a "small number of larger game development projects being deferred into H2 or cancelled, creating capacity gaps in Create which were unable to be filled at short notice".

Furthermore, it said that with this ongoing softer demand and the relatively slow ramp-up in content production in Hollywood, Keywords said that it expects its organic growth to be "slightly negative" during the first half of its financial year, with revenue expected to grow about 7% in the first half.

Despite this, the video games services company said it is seeing positive signs across the industry, with larger clients increasing their spend, adding that a stronger recovery is expected from the US strikes, with organic revenue expected to be around 10% in the second half of its financial year, which is in line with its medium term guidance.

In line with takeover rules, EQT has until the end of the working day on 3 July to either make a firm offer for Keywords Studios or step away from the deal.

---