Keywords Studio, a technical solution provider for the video game industries has acquired Lakshya Digital for $4 million. Keywords provides linguistic, testing and quality control services to video game developers and publishers and Lakshya Digital on the other is a Delhi based game art and game development company which provides outsourced work to video game studios all over the world.
Keywords has agreed to pay Lakshya the whole amount in two tranches: 91 per cent shares of Lakshya have been bought for $3 million and the remaining 9 per cent will be acquired for $1 million with an option to buy $400,000 worth of shares in Keywords in Oct 2015.
Speaking exclusively to AnimationXpress.com, Lakshya Digital CEO and co-founder Manvendra Shukul says: “Lakshya Digital will work independently and will be a studio that is under the umbrella of Keywords. Management remains the same at the studio and all the work will be under the Lakshya Digital brand.”
Keywords Studio is more of a post production company and Lakshya Digital is a production company. So, the acquisition is a match made in heaven with both the companies having common clients, the acquisition will enable Keywords’ involvement in the development cycle of video game titles.
“We wanted to reach to a wider audience, and the acquisition will give us access to the clients Keywords services. Also, though the working environment is similar for both parties, we will stick to game development and game art, which is out forte,” reveals Manvendra.
Giving some background to the story of Lakshya Digital he adds: “Being in the industry for over 20 years has been exciting; Lakshya started in 2004, when outsourcing video games was not really a fad in India. But, we did work on big video games, the biggest being Counter Strike: Global Offensive. We have a strong foundation as a company and our work speaks for itself.”
Lakshya Digital posted revenues worth of Rs 249 million in the financial year 2012-13 ending in March, with net assets of Rs 78 million.
With global studios showing interest in investing in the Indian gaming ecosystem, it’s certainly exciting times for gaming in the country. But, with the gaming industry clocking a cool $93 billion last year, this deal is just a drop in the ocean but it is an encouraging step for smaller players with giant dreams.
