The Dublin-headquartered business said that it will recommend the acquisition to its shareholders.
The offer of £24.50 per share reflects a premium of around 67pc on the closing price of £14.70 per share on May 17, before the offer period began.
The deal is expected to close in the final three months of the year
However, it was down from the £25.50 per share offer made by EQT in late May.
The deal is expected to close in the final three months of the year, the companies reported today.
In May, Keyword Studios confirmed that it was in advanced discussions with EQT regarding a potential sale.
Keywords Studio, which is listed in London, added at the time that the buyout offer at the time followed four previous unsolicited proposals from EQT, all of which were rejected by the company’s board.
In a statement today, Keyword Studios chairman Don Robert said that Keywords Studios is set to benefit from EQT’s “operational expertise and its deep industry network” following the acquisition.
A screen grab from the Ubisoft game ‘Gods & Monsters’, worked on by Keywords Studios
He added that the board is “mindful” of near-term challenges and long-term uncertainties in the video game and entertainment industries, both of which have contributed to “volatile returns” for 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 to the undisturbed share price,” Mr Robert said.
“As a private company under EQT’s ownership, Keywords Studios will be well positioned to make the long-term investments required for the transition to next-gen video gaming and for global expansion,” added EQT Asia chairman Jean Salata.
Mr Salata said that EQT would draw on its existing experience in the industry to “support management and invest further in innovation, talent and also in M&A to accelerate Keywords Studios’ current strategy.”
The purshase will help Keywords Studios make the transition to next-gen video gaming
Keywords Studio provides services such as testing and translation to gaming companies. It also offers game development, audio development and art services.
The company has 70 studios and locations across 26 countries. The business reported that it works with 24 of the world’s top 25 gaming publishers. These clients include (but are not confined to) Google, Microsoft, Nintendo, Ubisoft and Riot Games.
“We see clear angles to create a services powerhouse of scale over the next five years and drive global integration around the service lines – in particular engineering – to make Keywords Studios the go-to shop for services globally,” Goodbody analyst Patrick O’Donnell wrote in a note.
“There is also a clear angle on M&A, with companies like Virtuos, an engineering/Art AAA service company in which EQT has a minority position,” added the analyst.
