Embracer Group has just taken it’s next step on its path to video game world domination, and it’s a huge one. The company has announced that they have entered into an agreement with Square Enix to purchase three of their video game studios, Crystal Dynamics, Eidos Montreal. and Square Enix Montreal, as well as all of their respective IPs and assets for the approximate amount of $300 million. This acquisition would give Embracer the three aforementioned studios, more than 1,000 employees, and more than eight global locations. Some of the high-profile IPs would also include Tomb Raider, Deus Ex, Legacy of Kain, Thief, and more.
Today we have entered into agreement to welcome over 1000 new colleagues through the acquisition of @CrystalDynamics, @EidosMontreal, and @SquareEnixMtl with a fantastic catalog of IPs such as Tomb Raider and Deux Ex, to be part of our ecosystem.https://t.co/NqELDQKTGe
— Embracer Group (@embracergroup) May 2, 2022
Embracer also mentions that this deal will be paid “on a cash and debt-free basis, to be paid in full at closing.” This essentially means that Embracer plans on paying out the deal in its entirety during a specific time frame, in this case “between July and September 2022.” Embracer stated that this new purchase will increase their overall portfolio as well as bring up the numbers for their ever-growing acquisition count. “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.”
Compared to some of the more recent acquisitions, this is one massive intake for the umbrella corporation. Crystal Dynamics alone has the video game world buzzing as they just recently announced a brand new Tomb Raider that is being developed with the Unreal 5 engine. Embracer not only has that now but the entire reboot series that the studio has created since 2013 too. Eidos Montreal’s most well-known IP is Deus Ex, which hasn’t seen a mainline release title since the 2016 Deus Ex: Mankind Divided. However, Eidos has been busy the past couple of years with Marvel’s Guardians of the Galaxy, which was generally well-received. Square Enix Montreal’s main focus has been the Go mobile series which takes established IPs of Square Enix’s western titles and repackages them into new mobile games.
Speaking of Square Enix, they’ve also released a statement in regards to this new transaction. According to the company, the purchase would allow them to “launch new business” and has plans on moving forward with investments that include “blockchain, AI, and the cloud.” This was hinted at earlier when Square Enix President Yosuke Matsuda explained how this, alongside NFT’s, would have a massive impact on the video game industry for the foreseeable future. Either way you look at Square Enix’s post-transaction ideas, there’s no denying that Embracer essentially took hold of some classic franchises. Also, they’ve been true to their word so far, making a plethora of acquisitions in just the first few months of the year.