LONDON, UK: Keywords Studios, the international technical and creative services provider to the global video games and entertainment industries, has acquired Hardsuit Labs, a US-based game development studio based in Seattle.

Founded in 2015 by Andy Kipling and Russell Nelson, Hardsuit has over 70 employees offering full external development, co-development, and porting services. The studio has a strong reputation with high-quality development capabilities and expertise in Unreal Engine, full-stack development services, and multi-SKU, cross-platform execution.

The teams at Hardsuit Labs have a long track record of embracing new technologies and platforms while supporting some of the largest global AAA game franchises. Previous projects include Activision’s Call of Duty and Crash Bandicoot. Andy Kipling and Russell Nelson will continue to lead the business post-transaction.

Hardsuit Labs, which is majority founder-owned, delivered revenues of approximately $11 million in 2022, with growth and margins in line with those of the Group. Under the terms of the acquisition, Keywords will pay maximum consideration of USD$15 million, with initial consideration of USD$8.25m, comprised of USD$6.60m in cash and US$1.65m in new ordinary shares to be issued within 30 days of completion.

There is a further USD$6.75m of contingent consideration, in a mix of cash and new ordinary shares based on growth targets being met over the two years following completion.

Bertrand Bodson, CEO of Keywords Studios, commented: “Hardsuit is a high-quality studio that works on some of the world’s largest franchises, and we are excited to welcome Andy, Russell and their team to Keywords. The business is a great fit for our Create service line and strengthens our existing offering for some of the strongest intellectual properties in digital entertainment. Hardsuit is our first game development studio in Seattle, growing our presence in a city home to several existing and potential clients, and gives us access to a high-quality talent pool from which to drive future growth. We are looking forward to working with the Hardsuit team and supporting the studio’s continuing growth as part of Keywords.”

Andy Kipling and Russell Nelson of Hardsuit, commented: “We are really thrilled to be able to start the next phase of our growth as part of Keywords. As the largest player in the industry, Keywords will provide us with a strong foundation and deliver opportunities for us to do more for our clients and franchises. We believe Keywords has a very similar people-focused and tech-savvy entrepreneurial culture and are excited to get started on delivering against our future growth opportunities.”

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