Keywords Studios buys Waste Creative Limited & Wicked Witch Software

Keywords Studios acquires Waste Creative Limited and Wicked Witch Software

LONDON, UK: Keywords Studios has acquired Waste Creative Limited and Wicked Witch Software Pty Limited for a total of £16.3 million, a news release said.

Waste Creative is a digital creative marketing agency based in London. Founded by Visar Statovci and Mike Petricevic in 2006, Waste Creative’s talented team of 70 people provides strategy and creative production services, including player community management, for mobile video game creators, including Supercell, Nintendo and Riot Games. 

In addition, the studio provides advice on the go-to-market strategy for new games and content as well as delivering high-speed, high-quality digital asset creation.  Visar Statovci, Mike Petricevic and the entire team will remain with the business.

The acquisition will help to address the increasing demand from the Group’s client base for games as a service support covering the full marketing lifespan of games, from pre-launch support to post launch ongoing support, with a focus on community engagement and retention.

Waste Creative is forecast to generate revenue of £6.0m in the year ending 30 June 2022.  Under the terms of the acquisition, Keywords will pay up to £9.8m comprising initial consideration of £2.2m in a mix of cash and shares and up to £7.6m in a mix of cash and shares dependent on the performance of the business over the three years from completion.

Wicked Witch is a 73 person video game development studio in Melbourne, Australia. Founded in 2001, Wicked Witch has an established track record in video game and graphic application development on a range of platforms including PC, mobile, PlayStation, Xbox and Switch. The studio works for large publishers including Microsoft and Riot Games as well as Australian based developers and publishers. 

Wicked Witch is forecast to generate revenue of US$6m in 2022 and has been acquired in return for a cash payment of US$6.5m.

The acquisition follows Keywords Studios investment in Tantalus Media Pty Limited in March 2021. Tantalus and Wicked Witch have an established working partnership and will continue to collaborate closely on certain large projects. Steve Dauterman will lead Wicked Witch, backed by the experienced existing management team.

Bertrand Bodson (CEO of Keywords Studios) commented: “We are delighted to have further strengthened the Keywords group by adding such talented teams in London and Melbourne.

“I am delighted to welcome Visar, Mike and the talented Waste Creative team to Keywords.  We are really looking forward to working with Waste Creative’s highly skilled and experienced team. Games as a service marketing support with a focus on community growth and fan retention are areas of increasing importance to our clients and Waste Creative will help us meet that growing demand and provide them with extensive and more integrated marketing solutions.

“We are thrilled that Wicked Witch is joining Keywords.  This is our second acquisition in Australia in 2021, as we execute against our strategy of expansion in the region.  Wicked Witch’s skilled and talented team is a great addition to our game development service line and will increase our ability to meet clients’ strong demand for technical development solutions.  We look forward to supporting Steve and the team and investing in the studio’s next phase of growth.”

Visar Statovci (Co-Founder of Waste Creative) commented: “We are thrilled to join Keywords and by the opportunities that being part of this industry leading global business will present for our clients and team.  By working with Keywords, we will be able to expand our services to meet our clients’ full marketing needs from early access / beta launch stage to the ongoing growth, retention and management of their player and fan communities.” 

Steve Dauterman (Wicked Witch Studio Head) commented: “We are very excited to join our friends at Tantalus as part of the Keywords group and to help to expand the business in Australia and beyond. The acquisition will help accelerate our growth and provide our clients and staff with the opportunities that come with joining this industry leading global business. We are looking forward to the next phase in the studio’s development as part of the Keywords group”.

Keywords Studios is an international technical services provider to the global video games industry. Established in 1998, and now with over 70 facilities in 23 countries strategically located in Asia, Australia, the Americas and Europe, it provides integrated art creation, marketing services, game development, testing, localization, audio and player support services across more than 50 languages and 16 games platforms to a blue-chip client base of over 950 clients across the globe.

 (www.keywordsstudios.com)

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