DUBLIN-BASED VIDEO games developer Keywords Studios is to be bought by Swedish private equity firm EQT in a takeover worth £2.1 billion (€2.4 billion).

The tech company has backed the cash bid worth £24.50 (€29) a share from the London-listed firm.

The bid price – worth £2.2 billion (€2.6 billion) including debts – marks a 66.7% premium to Keywords’ closing share price on 17 May.

It is also higher than the initial proposal, but lower than a £25.50 (€30) approach put forward in May.

Keywords Studios chairman Don Robert said: “Whilst the board expects the continued execution of Keywords Studios’ strategic objectives and its leadership position to create significant value, the board is also mindful of the near-term challenges in the broader video games and entertainment industries, as well as other longer-term uncertainties, which have caused volatile returns for Keywords Studios’ shareholders over the past 15 months.

“On balance, the board believes that this offer represents a good opportunity for Keywords Studios shareholders to realise value for their investment in cash upfront at a significant premium.”

The takeover will deal yet another blow to the London Stock Exchange, which has seen a raft of firms being taken private or switching their listings overseas.

EQT previously made four unsolicited takeover proposals for Keywords, which had been rejected by the company.

Keywords counts Google, Nintendo, Microsoft and EA among its clients. It provides services used in blockbuster games including Fortnite and Assassin’s Creed.

The business was originally founded in 1999 when Giorgio Guastalla moved to Dublin to work with his partner, Teresa Luppino, on a language translation and localisation business for software. 

The firm now has operations in 26 countries across Europe, Asia and Australia.

EQT has a track record of investing in technology firms, having spent more than $37 billion (€34 billion) on 116 tech investments around the world.

With reporting by Press Association