It seems the Embracer Group doesn't want to be left out of the high-profile acquisition spree going on in the video game industry. As of this morning, the group has announced that it has entered into an agreement to acquire Crystal Dynamics, Eidos-Montreal, and Square Enix Montreal. That's three major video game studios that will join Embracer's massive roster, including the likes of Gearbox, 3D Realms, and Aspyr Media.
"We are thrilled to welcome these studios into the Embracer Group," said Lars Wingefors, co-founder and CEO of Embracer Group. "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.”
Although Crystal Dynamics own the IPs like Tomb Raider and made Marvel's Avengers, and Eidos-Montreal has Marvel's Guardians of the Galaxy and the Deus Ex series, it's not immediately apparent where the video game IP rights to the Marvel properties will land. Square Enix Montreal diversifies the group's portfolio thanks to the studio's experience with mobile games like Lara Croft Go, Deus Ex Go, Hitman Go, and Hitman Sniper: The Shadows.
After the agreement, Square Enix America and Europe CEO Phil Rogers called the Embracer group "the best kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today. 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”
The total amount to be paid by Embracer Group for the acquisition of all three studios is USD 300 million on a cash and debt free basis, to be paid in full at the time of the deal's closing. The deal is expected to be completed during the second quarter of financial year 22/23.
This acquisition will add to Embrace Group's massive 115 internal developer studio portfolio, to which it has made acquisitions worth $8 billion since 2020.