Irish video game specialist Keyword Studios plans to tap investors for €113 million to spend mopping up smaller rivals left struggling by the Covid-19 crisis.
Dublin-headquartered Keyword said on Thursday that it intended issuing new shares to raise £100 million (€113.7 million) to fund plans to buy other businesses in its industry.
Keyword said that increased demand from people at home due to coronavirus restrictions is boosting the market for new games.
However, despite the industry’s resilience to the crisis, many of its smaller companies are coming under pressure.
According to the Irish group, about 29 per cent of gaming businesses that took part in a recent survey of 300 industry professionals feared they would face insolvency if the pandemic’s fallout dragged on for six months.
“This is likely to result in an increased number of acquisition opportunities for Keywords Studios,” the company said in a statement.
It added that this could also revive takeover talks with some companies that have recently stalled.
Keyword’s statement that some of its board members had pledged to purchase new shares and would contribute to £50,000.
The Irish company, which provides technical services to video game developers, said that March and April sales rose 7 per cent, despite disruption caused by the pandemic.
