Embracer Group Acquires Eidos, Crystal Dynamics, and Square Enix Montréal: Presentation

Embracer Group’s acquisition of Crystal Dynamics, Eidos Montréal, and Square Enix Montréal represents a strategic expansion of its AAA development capabilities and intellectual property portfolio. Valued at USD $300 million on a cash-and-debt-free basis, the transaction encompasses three studios, approximately 1,100 employees across eight global locations, and a library of over 50 back-catalogue titles. Key franchises included in the deal are Tomb Raider, Deus Ex, Thief, and Legacy of Kain. The acquisition is expected to close between July and September 2022.

The primary rationale for the purchase centers on integrating highly experienced development teams and leveraging established, globally recognized brands to drive organic growth. Embracer Group intends to utilize its existing operating model to maximize the commercial potential of these studios, specifically through new AAA releases, transmedia opportunities, and cross-ecosystem synergies. Following the transaction, Embracer Group’s internal infrastructure will grow to include over 124 studios and a development pipeline exceeding 230 games, with more than 30 titles classified as AAA.

Financially, the acquired entities are projected to reach a breakeven point or provide a modest contribution to operational EBIT during the first two fiscal years. Over the long term, once the AAA product pipeline matures, the studios are expected to generate an average of at least SEK 500 million in annual operational EBIT. To support this acquisition and its broader M&A pipeline, Embracer Group has secured SEK 4.0 billion in new long-term debt and extended existing loan facilities, ensuring over SEK 10.0 billion in available liquidity. The company maintains a stable financial outlook, reiterating its operational EBIT forecasts for the current and upcoming fiscal years.