Embracer Group To Acquire Three Square Enix Europe Studios For $300M
After buying out Perfect World Entertainment and its subsidiaries earlier this year, Embracer Group is now in the process of acquiring three new development studios, namely: Crystal Dynamics, Eidos Montreal, and Square Enix Montreal, all of which are subsidiaries of Square Enix Europe.
The total purchase price for all three studios is $300 million to be paid up front in cash upon closing the deal. The mergers give Embracer access to a huge portfolio of over 50 games, including the Deus Ex, Legacy of Kain, Thief, and Tomb Raider franchises and allows them to further expand their global operations. The studios employ around 1,100 employees across eight offices located all around the world.
“The acquisition builds on Embracer’s mission of creating a leading independent global gaming and entertainment ecosystem. Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential […] as well as demonstrating the ability to create AAA games with large and growing fan bases. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities,” read the official press release.
“We are thrilled to welcome these studios into the Embracer Group,” said Embracer Group CEO and Co-founder Lars Wingefors. “We recognize the fantastic IP, world class creative talent, and track record of excellence that have been demonstrated time and again over the past decades. It has been a great pleasure meeting the leadership teams and discussing future plans for how they can realize their ambitions and become a great part of Embracer,”
“Embracer is the best kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today,” said Square Enix America and Europe CEO Phil Rogers. “It is the perfect fit for our ambitions: make high-quality games, with great people, sustainably, and grow our existing franchises to their best versions ever. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment.”
In line with the acquisitions, Embracer has secured additional long-term debt funding commitments worth 4 billion SEK, or roughly $406.4 million. The mergers are expected to be completed during the company’s 2nd financial quarter which coincides with the 3rd quarter of 2022.
More information can be found on the Embracer Group official site.