Embracer Group to acquire multiple Square Enix studios

Multiple developers and their franchises are moving, including Tomb Raider and Deus Ex

Posted on May 2, 2022 - 2:47pm EST

Embracer Group AB has announced it entered into an agreement to acquire the development studios 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 from Square Enix.

In total, the acquisition includes ~1,100 employees across three studios and eight global locations. The total purchase price amounts to USD 300 million on a cash and debt free basis, to be paid in full at closing. The transaction is subject to various regulatory and other external approvals and is expected to close during July-September 2022.

Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. Embracer sees an opportunity to invest in these franchises, as well as the additional acquired IPs such as Legacy of Kain, Thief, and other original franchises.

After closing this transaction, the US will be Embracer’s #1 country by number of game developers and Canada will be #2. In total, post pending closings, Embracer will have more than 14,000 employees, 10,000 engaged game developers, and 124 internal studios. Embracer’s upcoming content pipeline includes more than 230 games with more than 30 AAA games.

Embracer Group AB (formerly Nordic Games Licensing AB and THQ Nordic AB) is a Swedish video game and media holding company based in Karlstad. The company was established under the name Nordic Games Licensing in 2011 as part of Nordic Games Group and as the parent of publisher Nordic Games GmbH. The company has been growing rapidly over the past few years through acquisitions.

Square Enix, meanwhile, only issued a brief statement, saying the transaction aligns with their future goals. Their overseas studios will continue to publish franchises such as JUST CAUSE, OUTRIDERS, and Life is Strange.

Square Enix