Keywords Studios plc, a videogames services group, has acquired Wushu Studios, a Liverpool-based games studio. Wushu Studios was established in 2017 as an original IP studio which later transitioned to a work-for-hire model. It provides a range of services to publishers and developers, including co-development, full development projects, porting and remastering work, as well as live support services. Its recent portfolio includes titles such as Fall Guys, State of Decay, Forza Horizon 5, and Baldur’s Gate 3.
Wushu Studios employs around 160 people and has multiple project teams that work closely with clients. Its revenues in the year ending 31st August 2024 are expected to reach £12.5 million with an adjusted EBITDA margin similar to that of Keywords. Wushu’s founder and majority owner, Alan McDermott, and his management team will continue leading the business post-acquisition. Keywords Studios paid upfront consideration in cash from its existing revolving credit facility.
Alan McDermott voices his excitement about the acquisition, saying that it is an exciting new chapter for Wushu as it gains access to a wealth of resources and expertise while maintaining its creative independence. The acquisition aligns with Keywords Studios’ strategy to build out its game development offer globally. Bodson, Keywords Studios CEO, added that Wushu’s highly skilled team, strong relationships, and growth opportunities can complement the existing Create studios as Keywords enhances its offerings to a global client base.
