Tomb Raider
Image via Crystal Dynamics

The Embracer Group Has Purchased Eidos, Crystal Dynamics, and Square Enix Montréal

TomIn a move true to Embracer’s word, the publishing giant picked up another stable of development studios, this time from Square Enix.

This deal includes Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and a catalogue of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain and more than 50 back-catalogue games. Embracer Group is paying $300 million for the studios and says it will complete the sale “cash and debt-free basis, to be paid in full at closing,” according to a press release.

“We are thrilled to welcome these studios into the 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,” says Lars Wingefors, Co-founder and Group CEO, Embracer Group”

The creative team of ~1,100 employees across three studios and eight global locations will join Embracer Group as employees. If all goes well, the deal will close during Embracer Group’s 2022/2023 fiscal year.

Two properties, Tomb Raider and Deus Ex, have sold ~88M and ~12M units, respectively. Embracer sees potential to invest in these properties while also revisiting the past and newly acquired IPs such as Legacy of Kain, Thief, and other franchises.

“Embracer is 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,” says Phil Rogers, Square Enix America and Europe CEO.”

When the deal closes, Embracer says the US will be its number one of developed with Canada being in second place.

“In total, post pending closings, Embracer will have more than 14,000 employees, 10,000 engaged game developers, and 124 internal studios,” the release reads. “Embracer’s upcoming content pipeline includes more than 230 games with more than 30 AAA games. This acquisition will bring additional scale to Embracer’s current AAA segment, and Embracer will have one of the largest pipelines of PC/Console games content across the industry, across all genres.” Tomb

“The transaction will assist the company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the company’s core businesses in the digital entertainment domain,” Square Enix said in its own release. “In addition, the transaction enables the launch of new business by moving forward with investments in fields such as blockchain, AI, and the cloud.”