Keywords Studios buys Quebec-based Sunny Side Up

Keywords Studios said on Friday that it has agreed to buy Quebec-based Sunny Side Up from its founder Thomas Giroux for CAD5.9m and that it expects adjusted pre-tax profit for the year to be in line with analysts' expectations.

The AIM-listed company, which provides services to the global video games industry, said the deal is expected to complete no later than 4 January 2019.

Based in Canada and established in 2012, Sunny Side Up produces high quality marketing assets for game publishers and developers including game trailers, key art assets and motion graphic production. Keywords said the acquisition will complement and build on its game trailer and marketing services offering provided by Fire Without Smoke, The TrailerFarm and its other Art Services studios.

In the year to 30 September 2018, Sunny Side Up generated earnings before interest, tax, depreciation and amortisation of CAD1.2m.

Chief executive officer Andrew Day said: "We are delighted to welcome Thomas and the talented Sunny Side Up team to the Keywords family. Following our acquisitions of Fire Without Smoke and The TrailerFarm, Sunny Side Up's high quality game trailers, technical expertise and marketing service experience further extends the group's geographic, client reach and scale in this relatively new and exciting area for Keywords.

"As part of the group, Sunny Side Up will be able to leverage our well established presence in Montreal and Quebec City to support its continued growth."

The company also provided a brief update ahead of its fuller trading update in January. It said it expects adjusted pre-tax profit to be within the range of analyst forecasts at around €37m, on revenue in the region of €250m. This would represent 61% and 65% increases on the previous year, respectively.

At 0945 GMT, the shares were up 5.6% to 1,092p.