Major acquisition agreement reached with Square Enix
The bottomless money pit that is Embracer Group has gone on another spending spree, announcing plans to acquire three studios from legendary Japanese developer/publisher Square Enix. The company has reached an agreement to buy developers Crystal Dynamics, Eidos Montreal and Square Enix Montreal for approximately US$300 million.
“We are delighted to welcome these studios to the Embracer Group,” Embracer Group CEO Lars Wingefors said in a press release. “We recognize fantastic intellectual property, world-class creative talent and a track record of excellence that has been demonstrated time and time again over the past decades. It was a great pleasure to meet the management teams and discuss future plans on how they can achieve their ambitions and become a big part of Embracer.
“Embracer is gaming’s best-kept secret,” is the curious statement from Square Enix America CEO Phil Rogers. “A massive, decentralized collection of entrepreneurs that we’re thrilled to be a part of today. It’s the perfect fit for our ambitions: to build high-quality games, with great people, in a sustainable way, and grow our franchises existing ones to their best versions. Embracer allows us to forge new partnerships across all media to maximize the potential of our franchises and live our dreams of creating extraordinary entertainment.”
Along with the acquisition of Crystal Dynamics, Eidos Montreal and Square Enix Montreal, Embracer Group will take over much of the studios’ respective IP catalogs, which include popular and financially successful franchises such as Deus Ex, Thief, Legacy of Kainand of course, Grave robber. The deal, which is expected to close in fall 2022, will also see Embracer add 50 previously released titles to its licensing ledger, which potentially includes the large Marvel’s Guardians of the Galaxy and the big steps Marvel’s Avengerspending discussions with licensees.
According to industry analyst Daniel AhmadSquare Enix has been looking to offload much of its western development division for some time, with the publisher reportedly disappointed with what it sees as “underperforming” releases in the industry.
All three Square Enix studios join Embracer Group’s powerful portfolio of developers and publishers, which includes THQ Nordic, Gearbox Entertainment, Koch Media and Saber Interactive, as well as a wide range of subsidiary and studio partners such as Coffee Stain , DECA Games, Asmodee and Easybrain. .