A Liverpool games studio has been acquired by videogames services group Keywords Studios plc.
Wushu Studios was founded in 2017, initially as an original IP studio, before transitioning to a work-for-hire model.
It provides a range of services to high-profile publishers and developers on co-development and full development projects as well as porting & remaster work and live support services. Recent titles it has worked on include Fall Guys, State of Decay, Forza Horizon 5 and Baldur’s Gate 3.
Wushu employs around 160 people, with multiple project teams working closely with clients. Its revenues are expected to be £12.5 million with an adjusted EBITDA margin in line with that of Keywords in the year ending 31st August 2024.
Wushu’s founder and majority owner Alan McDermott and his management team will remain with the business post-acquisition. The upfront consideration was paid in cash and funded from Keywords’s existing revolving credit facility.
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“This is an exciting new chapter for Wushu. Joining Keywords allows us to maintain our creative independence while gaining access to a wealth of resources and expertise. It allows us to further enhance the services we offer our long-term clients with an extensive resource network and broad skillsets,” said McDermott.
“Keywords shares our ambitions for continued growth, and their investment in Wushu will help us continue to remain faithful to our people-first approach to development. We look forward to collaborating with the broader Keywords network and taking on ever more ambitious projects in the future.”
Bertrand Bodson, CEO of Keywords Studios, added: “We are thrilled to welcome Wushu to Keywords. The acquisition aligns with our strategy to build out our game development offer globally. We now have two studios in Liverpool which is a key regional hub for talent in the UK.
“Wushu’s highly skilled team, strong relationships and opportunities for growth will be important assets that complement our existing Create studios as we continue to enhance our offering to our global client base.
“We look forward to working with Alan and the talented team over the coming years to support and drive growth in the business.”