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Embracer Group buys Crystal Dynamics, Eidos Montreal and IPs including Tomb Raider for $ 300 million

Embracer Group has agreed to acquire a large portion of Square Enix’s $ 300 million Western Development Arm.

The agreement will mean that Embracer Group will buy Crystal Dynamics, Eidos Montreal, Square Enix Montreal and a catalog of IPs, including:

  • Tomb Raider
  • Deus Ex
  • Thief
  • The legacy of Cain

It will also include “more than 50 catalog games” from Square Enix. This would potentially also include Square Enix’s Marvel games, Avengers and Guardians of the Galaxy, subject to the licensee’s agreements.

The total acquisition includes about 1,100 employees in three studios in eight locations around the world.

According to Embracer, the total purchase price will be $ 300 million, “on a cash and debt-free basis to be paid in full upon closing”. The transaction is expected to be completed in the second quarter of this financial year (between July and September 2022).

In a press release, Square Enix said the deal “enables the launch of new businesses by moving forward with investments in areas including blockchain, AI and the cloud”.

It added: “In the future, the company’s development function will include its studios in Japan, Square Enix External Studios and Square Enix Collective. The company’s overseas studios will continue to release franchises such as Just Cause, Outriders and Life is Strange”.

In a separate statement, Square Enix America and Europe CEO Phil Rogers said: “Embracer is the best kept secret in gaming: a massive, decentralized collection of entrepreneurs that we are excited to be a part of today.

“It fits perfectly with our ambitions: make high-quality games, with amazing people, sustainably, and expand our existing franchise to their best versions ever. Embracer allows us to create new partnerships across all media to maximize our franchises. potential and live out our dreams of making extraordinary entertainment. “

Embracer Group buys Crystal Dynamics, Eidos Montreal and IPs including Tomb Raider for $ 300 million
Square Enix has stated that sales of Eidos Montreal’s Guardians of the Galaxy game “fell short of initial expectations”.

Embracer co-founder and CEO Lars Wingefors added: “We are delighted to welcome these studies into the Embracer Group. We recognize the fantastic IP, world-class creative talent and expertise that has been demonstrated time and time again over the past decades.

“It has been a great pleasure to meet the management teams and discuss future plans for how they can realize their ambitions and become a big part of Embracer.”

Crystal Dynamics announced last month that the next Tomb Raider game has been developed using Unreal Engine 5.

In a January 2021 video outlining its plans for the franchise’s 25th anniversary last year, Crystal Dynamics revealed that Lara Croft’s next adventure will “unite” the timelines of Core Design’s original Tomb Raider game and her own reboot trilogy, but warned fans not to expect it. in a minute.

The president of Square Enix stated last month that the company’s Japanese studios should not try to make games aimed specifically at Western players.

In an interview with Yahoo Japan, Yosuke Matsuda explains that while it is crucial that Square Enix’s games sell well globally, it would be a mistake if its Japanese developers tried to emulate the Western style of gaming.

Wingefors reportedly told the Financial Times last month that he plans to make a number of acquisitions in the coming months and years. Since the start of 2020, the Swedish company has made 62 acquisitions at a cost of $ 8.1 billion (not including the deal announced today).

Once the deal is completed, Embracer, which also owns companies such as THQ Nordic, Koch Media / Deep Silver, Saber Interactive and Gearbox Software, will have 124 internal game development studies.

Its largest acquisition was the acquisition for 2.75 billion euros of the French board game company Asmodee in December 2021.

Last year, it bought Borderlands developer Gearbox for up to $ 1.4 billion, and by 2020, it bought World War Z and Witcher 3-port developer Saber in a deal that could rise to $ 525 million.

In March, Embracer bought Dark Horse Media, one of the leading American comic book publishers, for an undisclosed amount.