Keywords acquires work-for-hire studio Wushu to expand Create division

Game service provider Keywords has acquired Wushu Studios to bolster its production capabilities.

Based in Liverpool, Wushu was established in 2017 to create original franchises but eventually transitioned to a work-for-hire model.

The company has worked on a range of high-profile projects including Fall Guys, State of Decay, Forza Horizon 5, and Baldur's Gate 3. Keywords said Wushu has grown well despite "market turbulence" and noted the company expects to deliver adjusted revenues of £12.5 million ($16 million) during the fiscal year ending August 31, 2024.

Wushu founder and majority owner Alan McDermott and the current management team will remain at the helm post-acquisition. Keywords said the studio currently has a "strong pipeline of high-quality projects" in development.

Keywords CEO Bertrand Bodson said the company is "thrilled" to welcome Wushu into the fold. "The acquisition aligns with our strategy to build out our game development offer globally. We now have two studios in Liverpool which is a key regional hub for talent in the UK," added Bodson in a press release.

"Wushu's highly skilled team, strong relationships and opportunities for growth will be important assets that complement our existing Create studios as we continue to enhance our offering to our global client base. We look forward to working with Alan and the talented team over the coming years to support and drive growth in the business."

An "exciting new chapter" for Wushu

Wushu founder McDermott said life under Keywords represents an "exciting new chapter" for the studio, but said the deal won't compromise its creative independence.

"[The deal] allows us to further enhance the services we offer our long-term clients with an extensive resource network and broad skillsets," he added.

"Keywords shares our ambitions for continued growth, and their investment in Wushu will help us continue to remain faithful to our people-first approach to development. We look forward to collaborating with the broader Keywords network and taking on ever more ambitious projects in the future."

Today's news comes shortly after Keywords confirmed it has laid off a "small" number of workers at Detonation Racing developer Lively Studios.