Embracer Group Acquires Vermila Studios

Key insights

6 takeaways

01
Embracer Group has acquired Madrid-based Vermila Studios through its subsidiary Amplifier to expand its portfolio of narrative-driven, single-player games.See it on page 2
02
The acquisition involves an initial payment of €0.9 million, comprised of 60% cash and 40% Embracer B shares.See it on page 2
03
Two performance-based earnouts of €1 million each in Embracer B shares are tied to the studio achieving net contributions of €15 million over five years and €30 million over ten years.See it on page 2
04
Embracer plans to double the current ten-person development team at Vermila Studios to twenty employees, supplemented by additional contractors.See it on page 2
05
Vermila Studios is currently developing 'Crisol: Theater of Idols,' an Epic MegaGrant-winning first-person mystery-horror game based on Spanish folklore.See it on page 2
06
Founded in 2020 by David Carrasco and David Tornero, the studio will contribute its existing intellectual property and expertise in game design and fine arts to the Embracer ecosystem.See it on page 3

Summary

Embracer Group, through its wholly-owned subsidiary Amplifier, has finalized the acquisition of Madrid-based Vermila Studios. This strategic move integrates a ten-person development team into the Embracer ecosystem, with plans to scale the workforce to twenty employees plus contractors. The acquisition aims to bolster the company’s portfolio of unique, narrative-driven experiences by securing the studio’s intellectual property and development talent.

The deal is structured with an initial payment of €0.9 million, split between 60% cash and 40% Embracer B shares. Further compensation is tied to long-term performance milestones, specifically two earnouts of €1 million each in Embracer B shares, contingent upon the studio achieving aggregate net contributions of €15 million over five years and €30 million over ten years. This performance-based structure incentivizes the founders to maintain the studio’s growth trajectory while integrating into the larger corporate structure.

Vermila Studios, founded in 2020 by industry veterans David Carrasco and David Tornero, is currently developing Crisol: Theater of Idols. This title is a 3D, first-person, single-player mystery-horror game rooted in Spanish folklore, which has already received an Epic MegaGrant. The project serves as the foundation for a broader dark fantasy universe. By acquiring this studio, Embracer gains access to a specialized team with deep expertise in game design and fine arts, positioning the company to capitalize on the studio’s established creative vision and technical potential within the global single-player gaming market.