DAVY VIEW

Keywords Studios (KWS) has announced the acquisition of Descriptive Video Works (DVW) for a total consideration of up to CAD3.2m (CAD2.24m in cash and the remainder through the issue of 35,560 new ordinary shares). We view this as a highly complementary deal for KWS as it broadens its offering to clients via a new audio service, while also providing DVW with a significant opportunity to scale through the KWS platform and family. We reiterate our ‘Outperform’ rating.