Liverpool games studio Wushu acquired
Game development studio Wushu has been bought by the stock market listed Keywords Studios, a Dublin-based creative and technology-enabled service provider to the video games and entertainment industries.
Founded in 2017, Wushu started out as an original Intellectual Property (IP) studio, before transitioning to a work-for-hire model, providing a range of services to high-profile publishers and developers on co-development and full development projects as well as porting & remaster work and live support services.
Based in Exchange Flags in the centre of Liverpool, Wushu employs c.160 people, with multiple project teams working closely with clients on high-quality popular games such as Fall Guys, State of Decay, Forza Horizon 5 and Baldur’s Gate 3.
Keywords also owns Climax Studios, an award-winning AAA co-development games developer with a studio in Liverpool.
Though Keywords hasn’t revealed the acquisition price it was described as “within the Group’s targeted valuation range.”
Cash was paid upfront but with additional earn-out component.
Wushu has been making revenues of approximately £12.5m and an adjusted EBITDA margin “in line with that of the Group expected in the year ending 31 August 2024.”
Wushu’s founder and majority owner Alan McDermott and his management team will remain with the business post-acquisition as they look to continue Wushu’s growth which is underpinned by a strong pipeline of high-quality projects.
Alan McDermott, Founder of Wushu Studios, further commented: “This is an exciting new chapter for Wushu. Joining Keywords allows us to maintain our creative independence while gaining access to a wealth of resources and expertise. It allows us to further enhance the services we offer our long-term clients with an extensive resource network and broad skillsets.
“Keywords shares our ambitions for continued growth, and their investment in Wushu will help us continue to remain faithful to our people-first approach to development. We look forward to collaborating with the broader Keywords network and taking on ever more ambitious projects in the future.”
Bertrand Bodson, CEO of Keywords Studios, commented on the acquisition: “We are thrilled to welcome Wushu to Keywords. The acquisition aligns with our strategy to build out our game development offer globally.
“We now have two studios in Liverpool which is a key regional hub for talent in the UK. Wushu’s highly skilled team, strong relationships and opportunities for growth will be important assets that complement our existing Create studios as we continue to enhance our offering to our global client base. We look forward to working with Alan and the talented team over the coming years to support and drive growth in the business.”
