The acquisition of four French companies gives Keywords St (LON:KWS) strong capabilities across all major European languages for localisation and voice-over recording. The transactions boost our FY18 EPS by 5%, although some investment in integrating the entities will be required. The expanded offering should also support organic growth, through helping secure more centrally procured, multi-language contacts.
Consolidating French audio and localisation
Keywords Studios has further consolidated its leadership position in the European localisation and audio service lines through the acquisition of four Paris-based businesses – La Marque Rose (audio), Around the Word (game localisation), Dune Sound and Asrec (both audio recording) – for a total consideration of up to €7.6m (details overleaf). The transaction strengthens the company’s French language capability, which had been a relative weakness, and gives the company strong capabilities across all major European languages, which should enable Keywords to win larger and more comprehensive contracts as clients increasingly look to source all voice-over recording work from a single provider. The plan is to integrate the acquired businesses into the company’s existing recording studio in Paris, with c €1m expected to be invested in equipment and offices for the combined facilities.
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