Saber Interactive
CompanyUnited States
Documents about Saber Interactive
Embracer Group Ceases Operations in Russia: Divestment of Selected Saber Interactive Assets
Embracer Group has finalized the complete cessation of its operations within Russia through the divestment of selected assets from its Saber Interactive operative group.
- Embracer Group has exited Russia by divesting selected Saber Interactive assets to Beacon Interactive, a company controlled by Saber co-founder Matthew Karch, for a total transaction value of USD 247 million.
- The deal includes an option for the buyer to acquire 4A Games and Zen Studios, and it is expected to reduce Embracer’s net debt by approximately SEK 2.1 billion and annual capital expenditure by SEK 1.2 billion.
- Embracer anticipates a non-cash net loss of approximately SEK 6.0 billion as a result of the divestment, which is part of a broader corporate transformation strategy to reduce operational risk and expenditure.
Embracer Group Acquires Shiver Entertainment
Embracer Group has finalized the acquisition of Shiver Entertainment, a Miami-based game development studio founded in 2013.
- Embracer Group has acquired Miami-based Shiver Entertainment, integrating the studio into its Saber Interactive business unit to expand U.S. development capacity.
- Shiver Entertainment is expected to contribute SEK 40–60 million in operational EBIT for the 2022/2023 fiscal year, increasing to SEK 70–90 million in 2023/2024.
- The acquisition is structured as a combination of cash and shares, featuring an earn-out arrangement that incentivizes the founding management team for up to eight years.
Embracer Group Acquires DIGIC Pictures
Embracer Group has finalized the acquisition of DIGIC Pictures, a Budapest-based animation studio specializing in high-end 3D cinematics and commercial trailers for the global video game and film industries.
- Embracer Group has acquired Budapest-based animation studio DIGIC Pictures, integrating the 400-employee firm into its Saber Interactive business unit.
- DIGIC Pictures reported net sales of SEK 240 million and an operational EBIT of SEK 50 million for the 2021 calendar year.
- The studio is projected to contribute between SEK 60 million and SEK 80 million in annual operational EBIT through the 2023/2024 period.
Embracer Group New Acquisitions: August 18, 2021
Embracer Group expanded its development capabilities in August 2021 through the strategic acquisition of three specialized studios: Demiurge Studios, SmartPhone Labs, and Fractured Byte.
- Embracer Group acquired Demiurge Studios, SmartPhone Labs, and Fractured Byte in August 2021 to integrate them under the Saber Interactive subsidiary.
- Demiurge Studios, which generated $15 million in revenue in 2021, plans to scale its workforce from 68 to over 350 employees within five years.
- SmartPhone Labs adds over 100 employees with expertise in mobile, console, and VR development to the group's technical infrastructure.
M&A Medley: 8 Acquisitions
Embracer Group has executed a strategic expansion through the acquisition of eight distinct entities, including CrazyLabs, Ghost Ship Games, Easy Trigger Games, Force Field VR, DigixArt, Slipgate Ironworks, 3D Realms, and a majority stake in Grimfrost.
- Embracer Group acquired eight entities—CrazyLabs, Ghost Ship Games, Easy Trigger Games, Force Field VR, DigixArt, Slipgate Ironworks, 3D Realms, and a majority stake in Grimfrost—to expand its mobile, VR, and indie gaming footprint.
- The acquisitions involve an initial purchase price of SEK 2.7 billion, with total potential consideration reaching SEK 4.7 billion based on performance milestones through 2029.
- These investments are projected to contribute between SEK 2,000 and 3,000 million in net sales and SEK 350 to 550 million in Operational EBIT for the fiscal year ending March 2023.
Embracer Group Acquires Aspyr Media
The acquisition of Aspyr Media by Embracer Group represents a strategic expansion of the latter’s development and publishing capabilities.
- Embracer Group acquired Aspyr Media for an upfront payment of $100 million in cash and shares, with potential performance-based earn-outs reaching an additional $350 million.
- Aspyr Media will operate as an independent entity under Embracer’s Saber Interactive division, retaining its Austin headquarters and existing leadership.
- Aspyr’s proprietary technology, the Aspyr Studio Libraries, is a primary asset that reportedly reduces game porting times by 75 percent across platforms including macOS, Linux, iOS, Android, and consoles.
Embracer Group Acquires 4A Games
Embracer Group has acquired 4A Games, the developer behind the critically acclaimed Metro franchise, to integrate the studio into its Saber Interactive operative group.
- Embracer Group acquired 4A Games for an enterprise value of $36 million, consisting of $20 million in shares, $9 million in cash, and a potential $35 million earnout over five years.
- 4A Games will operate under the Saber Interactive group, retaining its independence while contributing its proprietary FPS engine to support Embracer’s broader internal development capabilities.
- The studio is projected to generate €20 million in revenue and €12 million in EBIT for the 2020 calendar year.
Embracer Group Acquires New World Interactive
Embracer Group has acquired New World Interactive to bolster its portfolio of first-person shooter (FPS) specialists and leverage the studio’s potential for AAA-level market performance.
- Embracer Group has acquired New World Interactive, integrating the studio into its Saber Interactive operative group to bolster its first-person shooter portfolio.
- The deal is structured to recoup the total investment within approximately three years, relying on existing proprietary titles and new, undisclosed intellectual properties.
- New World Interactive brings a portfolio of three titles that have generated over $50 million in collective revenue and a dedicated user base exceeding 10 million players.
Embracer Group M&A Update: August 13, 2020
Embracer Group’s August 2020 update outlines a strategic expansion through aggressive mergers and acquisitions, formalizing its transition into a diversified conglomerate comprising six distinct operating groups.
- Embracer Group has transitioned into a conglomerate structure organized into six operating groups: THQ Nordic, Koch Media, Coffee Stain, Amplifier Game Invest, Saber Interactive, and DECA.
- The company employs a decentralized governance model that allows original founders and management teams to retain operational autonomy while utilizing centralized capital and strategic support.
- As of August 2020, the portfolio includes 43 internal studios, 55 external studios, and 190 intellectual properties.
Embracer Group Investor Presentation: 6 April 2020
Embracer Group maintains a resilient operational outlook during the onset of the COVID-19 pandemic, prioritizing employee safety while transitioning the majority of its workforce to remote environments.
- Embracer Group projects Q1 2020 games revenue between SEK 810 million and 850 million, exceeding internal forecasts due to strong digital sales.
- Partner publishing revenue for the quarter ending March 31, 2020, is estimated at SEK 450 million to 500 million, falling slightly below expectations due to softening physical retail demand.
- The company maintains a dual-growth strategy focused on aggressive organic development and inorganic expansion through M&A, following the successful integration of Saber Interactive.
Embracer Group Acquires Saber Interactive: Investor Presentation
Embracer Group’s acquisition of Saber Interactive, announced in February 2020, serves to expand the parent company’s global development capabilities and intellectual property portfolio.
- Embracer Group acquired Saber Interactive for a total purchase price of $525 million, consisting of $150 million upfront and a $375 million earn-out structure over six years.
- Saber Interactive reported strong 2019 financial performance with $105 million in revenue and $62 million in EBIT.
- The acquisition adds 600 developers, 163 intellectual properties, and 31 internal studios to the Embracer Group portfolio.