CPP Investments, EQT and Temasek Acquire Keywords Studios
London, U.K. (November 4, 2024) – Canada Pension Plan Investment Board (CPP Investments), alongside EQT and Temasek, has completed the acquisition of Keywords Studios, the leading international video games service provider. CPP Investments invested approximately US$515 million for a 24.5% stake in the business. Keywords Studios’ ordinary shares have ceased trading on the U.K.’s AIM market and the company has been delisted from the London Stock Exchange.
Since its admission to the U.K.’s AIM market in July 2013, Keywords Studios has become the trusted global solutions provider to the world’s leading video games and entertainment companies, working with them across the full content development cycle, from concept through to launch and beyond. Keywords Studios has an excellent track record of evolving their business model to meet its clients’ needs and today has a diversified portfolio with services across the video games life cycle.
“Keywords Studios presents an attractive opportunity for CPP Investments to invest in an industry-leading global operator within a high-growth sector,” said Caitlin Gubbels, Senior Managing Director & Head of Private Equity at CPP Investments. “The business supports the global video gaming ecosystem through its extensive footprint and diversified revenue streams. We look forward to strengthening Keywords Studios’ market leadership and driving value creation alongside the management team and our longstanding partners, EQT and Temasek.”
CPP Investments’ net investments through the Private Equity department totalled C$136.8 billion at June 30, 2024. CPP Investments’ Private Equity strategy is focused on assets and sub-sectors where we maintain competitive advantages including a strong track record, superior insights and strategic partnerships to deliver attractive risk-adjusted returns.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2024, the Fund totalled C$646.8 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
24 October 2024 – EQT and Keywords Studios are pleased to announce that the investor group led by EQT, together with Canada Pension Plan Investment Board (CPP Investments) and Temasek, has completed its previously announced acquisition of Keywords Studios, the leading international video games service provider. Keywords Studios’ ordinary shares have now ceased trading on the AIM market and the company has been delisted from the London Stock Exchange.
Since its admission to AIM in July 2013, Keywords Studios has become the trusted global solutions provider to the world’s leading video games and entertainment companies, working with them across the full content development cycle, from concept through to launch and beyond. Keywords Studios has an excellent track-record of evolving the business to meet its clients’ needs and has a diversified portfolio with services across the video games life cycle.
As a global investor with decades of experience investing in services and technology, EQT’s support for Keywords Studios’ management team and strategy will enable it to accelerate its growth, including through additional capital for its value accretive acquisition strategy. It will also enable the business to expand into new and adjacent markets and invest in innovative technologies and services that will help it continue to meet changing customers’ needs and maintain its status as the global gaming services market leader.
Keywords Studios CEO Bertrand Bodson said: “This is a significant milestone for Keywords Studios as we start the next phase of our growth journey alongside our new partners. The hard work and dedication of everyone at Keywords Studios, as well as the long-standing support of our clients and shareholders, has enabled our growth over the last decade and I would like to thank them all for their support. We are confident that our expertise, combined with EQT’s resources, will only strengthen our ability to serve our customers and realise our growth potential and mission to be the world’s leading content creation platform for the video gaming industry. I look forward to what the next chapter will bring for our company, customers and employees.”
On behalf of the consortium, Janice Leow, Partner in the EQT Private Equity Advisory Team and Head of Private Capital Southeast Asia, commented: "We look forward to a strong partnership with the Keywords Studios management team to support and build on their strategy as a global leader in end-to-end video gaming technology services. Operating in a rapidly expanding market with strong tailwinds underpinned by a continued shift towards lean-forward entertainment, Keywords Studios is well-positioned to unlock substantial long-term value through its strong talent base and deep industry relationships. As the sector continues to evolve, the company's focus on technology innovation, higher value-added services, and international expansion will be critical in driving future growth.”
EQT has a long and successful track record investing in the services and technology industries, working alongside entrepreneurial management teams to accelerate growth in global businesses and transform them into industry leaders. EQT is investing from its BPEA Private Equity Fund VIII.
It is also worth mentioning Keywords Studios recently acquired US-based studio Certain Affinity:
Renowned AAA game development studio adds scale and action genre expertise to Keywords’ Create division.
Keywords Studios, the international provider of creative and technology-enabled solutions to the global video games and entertainment industries, is delighted to announce that it has entered into an agreement to acquire Certain Affinity, a leading US-based game development studio.
Certain Affinity was founded in 2006, focused primarily on providing high-end co-development services on AAA multiplayer titles. It has established an excellent reputation and supports some of the best-known studios and publishers on their biggest franchises. Notable projects include nearly 20 engagements supporting the Halo and Call of Duty franchises, as well as Hogwarts Legacy, DOOM, and many more.
Certain Affinity employs over 180 people in the US and Canada, anchored out of their offices in Austin, Texas, and Toronto, Ontario. This encompasses multiple teams working closely with clients on a range of announced and unannounced projects, including the highly anticipated upcoming game EXODUS from Archetype Entertainment, a division of game developer and publisher Wizards of the Coast, a subsidiary of Hasbro.
Certain Affinity's Founder and CEO Max Hoberman and his management team, including President & COO Paul Sams, will continue to lead the business post-acquisition, with expected growth underpinned by a strong pipeline of high-quality projects.
"We are thrilled to welcome Certain Affinity to the Keywords Group," said Keywords CEO Bertrand Bodson. "We have enormous respect for their business and reputation. They bring a wealth of knowledge, experience, and expertise to our Create division, complementing our existing skills and expanding our presence notably in the US and Canada. We look forward to partnering with Max, Paul, and their team over the coming years to continue to drive growth in our Create division and overall business."
Max Hoberman, Founder of Certain Affinity, also commented: "At this most difficult time in the market, we're thrilled to be able to provide stability and a supportive home for our team. The respect for our talent and culture that Keywords has shown, along with a willingness to invest in our growth, is unparalleled. Paul and I look forward to partnering with them to chart a course for careful expansion of our core co-development activities, refinement of our lead development capabilities, as well as championing the growth of the Create division.”
It's Election Day in the US so my comments will be short as I want to watch coverage.
CPP Investments invested approximately US$515 million for a 24.5% stake in Keywords Studios, the international provider of creative and technology-enabled solutions to the global video games and entertainment industries.
This is a co-investment alongside EQT, a private equity powerhouse and Singapore's Temasek.
Caitlin Gubbels, Senior Managing Director & Head of Private Equity at CPP Investments states this:
“Keywords Studios presents an attractive opportunity for CPP Investments to invest in an industry-leading global operator within a high-growth sector. The business supports the global video gaming ecosystem through its extensive footprint and diversified revenue streams. We look forward to strengthening Keywords Studios’ market leadership and driving value creation alongside the management team and our longstanding partners, EQT and Temasek.”
Caitlin was in charge of fund investments before taking over the helm of private equity and she is focused on leveraging those strong relationships for co-investment opportunities.
This acquisition of Keywords Studios fits right into that strategy, a nice US$515 million stake which is the ticket size CPP Investments is looking for to gain critical scale.
Below, Keyword Studios provides creative services to the global video games industry and beyond through our end-to-end platform, supercharged by their own technology. Their goal is to help you imagine more for your IP, bringing to life digital content that entertains, connects, and educates people worldwide.
Established in 1998, they are a team of over 13,000 based across more than 70 studios in 25+ countries. They provide game-ready art, marketing services, game development, functional and localization testing, text and audio localization, everything from casting to audio post production, community management, player support, content moderation, and everything else you need across your game's entire lifecycle.
Also, the management team at Keywords Studios present their Half Year Results for 2023.
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