EQT in talks to acquire UK-listed video game group for £2.2bn

European private equity group EQT is in advanced discussions to acquire video game services company Keywords Studios for a whopping £2.2 billion, marking the latest potential takeover of a London-listed company. The negotiations involve a cash offer of £25.5 per share, representing a more than 70% premium on the stock’s value at the close of trading on Friday.

Keywords Studios, based in Dublin and listed on London’s junior Aim market, boasts over 13,000 employees in 26 countries and provides a range of services from game art to marketing and testing. Its impressive client list includes major players like Activision Blizzard, Electronic Arts, and Tencent, with notable projects such as Fortnite and League of Legends under its belt.

Despite facing rejection of four unsolicited proposals from EQT, Keywords Studios’ board is now considering the latest offer as a “significant increase” from the initial bid. The company’s shares rose 5% in Friday trading, closing at £14.70 a share, reflecting investor confidence in the potential acquisition.

EQT, known for its substantial assets under management, has previously acquired UK-listed firms like veterinary pharmaceuticals company Dechra. The ongoing discussions between EQT and Keywords Studios come amidst a surge in takeover interest in UK-listed companies, driven by attractive share prices for foreign investors.

With UK takeover rules giving EQT until June 15 to make a firm offer or walk away, all eyes are on the outcome of these high-stakes negotiations in the gaming industry. Stay tuned for more updates on this developing story.