The board of Keywords Studios PLC announced on Wednesday its support for a £2.1 billion ($2.7 billion) takeover bid by Swedish private equity firm EQT AB. This move signifies the latest company to exit London’s capital markets.
Keywords Studios EQT’s £2.1B Takeover Offer : Details of the Offer
Keywords and EQT have agreed on a cash deal valuing Keywords at 2,450 pence per share. This represents a 66.7% premium over Keywords’ closing price of 1,470 pence on May 17, the day before the offer period commenced. The total share capital is valued at £2.1 billion under the proposed terms.
DLA Piper UK LLP is serving as the legal adviser to Keywords Studios, with a team led by London corporate partner Jon Earle and Dublin corporate services head Matthew Cole. The team also includes legal director Karin Kirschner, senior associate Blayre McBride, and associate Kate Kinsella.
Legal and Financial Advisers
Simpson Thacher & Bartlett LLP is the legal adviser for EQT and its bidding company, Houting UK Ltd. Kirkland & Ellis is providing financial counsel to EQT and the bidco. Houting plans to finance the acquisition through cash from EQT, Canada Pension Plan, and Temasek, a Singapore investment firm. Debt financing will come from JPMorgan Chase Bank NA.
Shareholder and Market Reaction
Keywords Studios, a key service provider to video game giants such as Activision Blizzard Inc. and Sega Corp., showed initial support for the 2,450 pence offer on June 28. This was despite an earlier, higher proposal of 2,550 pence per share in May. The revised offer followed EQT’s due diligence and Keywords’ announcement of slightly negative expected first-half growth.
