The Dublin-headquartered business said that the £2bn bid from EQT is at a value that the board would be “minded” to recommend to shareholders if a firm offer for the company is made.
Shares in the video games service business rose over 60pc on Monday following news of the offer.
The offer of 2550 pence per share reflects a jump of more than 70pc on Friday’s closing price.
Keywords Studio, which is listed in London, added that the latest buyout offer follows four previous unsolicited proposals from EQT in recent months, all of which were rejected by the company’s board.
In a statement today, it said that the current offer represents a “significant” increase from the private equity firm’s initial proposal.
Keywords Studio said that it is confident in the company’s current growth strategy of building a global platform offering solutions to the video games and entertainment industries, both organically and through acquisitions.
It provides services such as testing and translation to gaming companies. Keywords Studios also offers game development, audio development and art services.
In a statement, Keywords Studio added that EQT is supportive of this existing strategy.
EQT now has until June 15 to make a firm offer for the company.
Keywords Studios has 70 studios and locations across 26 countries. The business reported that it works with 24 of the world’s top 25 gaming publishers.
Clients include Google, Microsoft, Nintendo, Ubisoft and Riot Games.
Group revenue rose 13pc to €780.4m in 2023, according to results published by the business earlier this year.
Adjusted operating profit was up 6.5pc to €122m last year.
The company said that it expected to deliver strong revenue and profit growth this year.
“We made considerable progress against our strategic objectives and delivered a record year of M&A, bringing greater exposure to higher growth and margin Create services, and have an extensive pipeline of acquisitions in 2024,” chief executive Bertrand Bodson said at the time.
