Keywords Studios acquires Synthesis for up to €18m

keywordsKeywords has acquired the Synthesis group of companies. Synthesis provides localisation, audio and localisation testing services to video game developers and publishers. In particular, Keywords is acquiring 100% of the equity share capital of Synthesis Global Solutions SA in Switzerland, Sillabit S.R.L. in Milan, Italy and Synthesis Deutschland GmbH in Hamburg, Germany from the founders. In addition, certain assets and employees of Synthesis’s operations in France, Spain, Brazil, Mexico, US, Taiwan, Singapore, Korea and Japanwill transfer to Keywords.

The Synthesis Group posted pro forma revenues of €16.9 million and PBT of €2.0 million for the year ended 31 December 2015. The Group is paying up to €18 million, of which €1m in cash is contingent on revenue of at least €15 million being achieved in the 12 month period after the acquisition. Of the initial €17 million payable, €10.2 million was paid in cash on completion with the remainder in new Keywords shares to be issued in two equal tranches on the first and second anniversary of the acquisition.

Synthesis founded in Milan in 1995. It has expanded internationally, initially opening branches in Italy and Spain, followed by Germany, the USA and Japan and later extending its presence to France, Brazil, Mexico, Taiwan and Singapore. Founders Max and Luca Reynaud, , and the management team, will remain with the business.

Andrew Day, Chief Executive of Keywords, commented: “The acquisition of the Synthesis Group represents our largest acquisition to date and, in common with our acquisition in February 2014 of Babel Media, is an important milestone in our consolidation of this highly fragmented market.”

Ireland, Dublin & Italy, Milan

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