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Keywords splashes $13.3m on Heavy Iron Studios acquisition

Co-development studio most recently worked with Crystal Dynamics on Marvel's Avengers

The ever-expanding services empire that is Keywords Studios has added a new development firm to its ranks.

The company has acquired the US-based Heavy Iron Studios for a consideration of up to $13.3 million.

Initially, Keywords will bay $4 million in cash and $0.5 million in new ordinary shares on the first anniversary of the acquisition. The rest will be payable based on the team meeting certain performance targets.

The team of 43 staff will be retained, led by president and CEO Lyle Hall.

Heavy Iron Studios was founded in 1999 and owned by the original THQ, before it spun out to become an independent studio in 2009.

Over the years, it has assisted with the development of a wide range of titles, from the Disney Infinity games to entries in the Call of Duty series.

Most recently, it worked with Crystal Dynamics on Marvel's Avengers, which launched earlier this month.

The acquisition now makes games development the largest service line Keywords offers, according to CEO Andrew Day, and the company has a "healthy pipeline of acquisition opportunities" to review and pursue.

The news comes as Keywords announces its half-year financial results for 2020.

For the six months ended June 30, the company saw revenues rise by 13.3% to €173.5 million and adjusted profit before tax lit 17.9% to €21.7 million.