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. Founded in 2002, the studio employs 400 full-time staff and maintains a reputation for technical excellence in character realism and environmental rendering. This strategic move integrates DIGIC into the Saber Interactive business unit, aiming to bolster internal development capabilities across the broader Embracer portfolio, including Gearbox, THQ, and Koch Media.

Financial terms of the transaction remain undisclosed, though the deal includes a combination of shares and long-term earnouts, with expectations that the acquisition will be accretive to adjusted earnings per share. DIGIC reported net sales of approximately SEK 240 million and an operational EBIT of SEK 50 million for the 2021 calendar year. Projections indicate continued growth, with the studio expected to contribute between SEK 60 million and SEK 80 million in operational EBIT annually through the 2023/2024 period.

The acquisition serves as a vertical integration strategy, providing Embracer Group with a dedicated, world-class team to handle the increasing demand for high-quality cinematics within its major franchises. Founder and CEO Alexander Rabb will remain with the company, and operations will continue without restructuring. By securing this specialized talent, the organization intends to balance internal project requirements with the studio’s existing external work-for-hire business, ensuring a steady pipeline of high-fidelity visual content for future game releases.