CPP Investments, EQT, and Temasek Finalize Acquisition of Keywords Studios
CPP Investments, EQT, and Temasek Complete Acquisition of Keywords Studios
LONDON, Nov. 4, 2024 – The Canada Pension Plan Investment Board (CPP Investments), in partnership with EQT and Temasek, has finalized the acquisition of Keywords Studios, a prominent global provider of video game development and support services. CPP Investments has committed approximately USD $515 million for a 24.5% stake in Keywords Studios, which has now been delisted from the AIM market of the London Stock Exchange.
Since its listing on AIM in 2013, Keywords Studios has developed a strong reputation as a trusted solutions provider for the world’s top video game and entertainment companies, offering end-to-end services from concept creation to product launch and beyond. The acquisition, led by EQT, is designed to accelerate Keywords Studios’ growth, particularly through its acquisition strategy, as well as expansion into new and adjacent markets and investments in innovative technologies.
In 2023, the studio generated $844m (€780m) in Revenue and $139m (€109m) in EBITDA, representing the multiples of 3.3x EV/Revenue and 20.1x EV/EBITDA.
Strategic Insights and Growth Opportunities
Keywords Studios CEO Bertrand Bodson highlighted the acquisition as a key milestone for the company, which he described as entering “the next phase of our growth journey alongside our new partners.” He expressed confidence that with EQT’s resources, the company will strengthen its role as the global leader in content creation for the video game industry. Bodson also acknowledged the hard work of Keywords’ team and the longstanding support of its clients and shareholders, which have enabled the company’s success over the past decade.
EQT’s expertise and support are expected to provide Keywords Studios with additional capital to drive its acquisition strategy and expand its market reach. With a solid foundation and a strong focus on technology innovation, Keywords Studios is positioned to meet evolving industry demands, particularly as the video gaming sector continues to grow globally. EQT’s track record of accelerating growth in technology-driven service sectors will play a pivotal role in enabling Keywords Studios to build on its robust portfolio and expand its service offerings in line with market needs.
On behalf of the investor group, Janice Leow, Partner in the EQT Private Equity Advisory Team and Head of Private Capital Southeast Asia, expressed enthusiasm about the partnership with Keywords Studios. She emphasized the company’s position within a rapidly expanding market, where it is well-poised to unlock significant long-term value through its talent, innovation, and deep industry relationships. She noted that “the company’s focus on technology innovation, higher value-added services, and international expansion will be critical in driving future growth.”
About the Companies Involved
Canada Pension Plan Investment Board (CPP Investments)
CPP Investments is an independent organization that manages the assets of the Canada Pension Plan on behalf of its 22 million contributors and beneficiaries. Headquartered in Toronto and with offices in major financial hubs worldwide, CPP Investments’ portfolio includes public and private equities, real estate, infrastructure, and fixed income. With assets totaling CAD $646.8 billion as of June 30, 2024, CPP Investments aims to deliver sustainable long-term returns and manages investments independently of government oversight.
EQT
EQT is a global investment firm with a strong focus on investments that drive positive impact and value creation, particularly within technology, healthcare, and industrial sectors. Founded in Sweden, EQT supports companies with high growth potential by leveraging its extensive network of industry experts. EQT is known for partnering with companies to create value through operational improvements, strategic growth, and industry leadership. The firm’s BPEA Private Equity Fund VIII has been instrumental in funding this acquisition and supporting the growth of service-driven technology sectors.
Temasek
Temasek is a global investment company headquartered in Singapore with a diversified portfolio in financial services, telecommunications, technology, and real estate. Established in 1974, Temasek is committed to sustainable growth, investing in companies and sectors that address major global challenges like climate change and digital transformation. With a presence across Asia, the Americas, and Europe, Temasek’s investment approach emphasizes long-term resilience and inclusive growth, contributing to the success of companies across its broad portfolio.
Keywords Studios
Keywords Studios was founded in 1998 and has since grown into a leading global provider of comprehensive services across the entire video game development lifecycle. Its offerings include game development, art, audio, testing, localization, and player engagement, among other specialized services. Keywords Studios partners with top video game and entertainment companies worldwide, providing solutions that support their products from inception to post-launch. With the support of its new partners, Keywords Studios aims to further enhance its role as the premier content creation platform within the gaming industry.
For more information, visit the official press release on Keywords Studios’ website and the Press Release from the CPP