Keywords Studios has acquired US-based social media agency Digital Media Management (DMM) in a deal that could be worth up to $100 million (€92.2m).
The Dublin-headquartered, London-listed video games service provider will pay an initial sum of $67.5 million, split between $57.4 million in cash and $10.1 million in shares. However, up to $32.5 million extra in cash and shares could be paid depending on the company’s future performance in the two years following the completion of the deal.
DMM, which was founded in 2010 and employs more than 200 people, brings significant US expertise in social media and influencer marketing to Keywords. It provides integrated social media strategy, management, creative and influencer solutions to movie studios, streaming platforms, video games publishers, entertainment brands and public figures.
“The acquisition of DMM brings Keywords a top tier social marketing agency, world-class production location and capability, as well as a technology platform that can help scale its influencer offering. It extends our capabilities in an increasingly critical area of the marketing landscape, accelerating our progress towards being able to offer a truly holistic solution to our clients’ engagement needs,” said Bertrand Bodson, chief executive of Keywords Studios.
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“With the ever-increasing convergence of entertainment and video gaming we believe that delivering DMM’s social media marketing expertise to our clients will enable them to enhance their engagement with their player base.”
Following the acquisition DMM will join Keywords’ Engage service line, led by DMM founder Luigi Picarazzi and chief operating officer Adam Reynolds.
The company recorded revenues of $34 million in 2022, with earnings before interest, tax, depreciation and amortisation of $8.5 million.
“We are excited by the opportunity to join Keywords, which will extend our reach and support us in the next stage of our growth and development, building on our successes to date,” said Mr Picarazzi.
“The combination of DMM’s market-leading digital and social media capabilities and Keywords’ existing offering will provide a compelling proposition across the combined, broader client base in both the entertainment and video gaming sectors, which continue to converge. We are excited to continue our journey together.”
DMM recently built a 11,000sq ft production studio to create original content and has its proprietary software Creator Lab to partner influencers with brands that have expressed affinity for a particular game or entertainment property.