Embracer Group has agreed to acquire a large part of Square Enix’s western development arm for $300 million “on a cash and debt free basis, to be paid in full at closing”.
The deal, expected to close between July and September this year, will reportedly see Embracer Group acquiring developers Crystal Dynamics, Eidos Montreal and Square Enix Montreal.
They also score a catalogue of high-profile IPs including key franchises like “Tomb Raider,” “Deus Ex,” “Thief” and “Legacy of Kain” along with more than 50 back catalogue games from Square Enix.
In total, the acquisition includes around 1,100 employees across three studios and eight global locations. Swedish-based Embracer already owns multiple other publishers including THQ Nordiq, Saber Interactive, Koch Media and Gearbox Entertainment. Its franchises now include the likes of “Borderlands,” “Metro,” “Saints Row,” “Darksiders,” “Dead Island,” and “TimeSplitters”.
When the deal is finalized, Embracer will have 124 internal studios with more than 230 games (30 of those being AAA titles) in development. As part of the deal, Eidos Montreal also plans to revive the “Deus Ex” franchise using new Unreal Engine 5 technology. It follows Crystal Dynamics announcing last month that it was developing a new Unreal Engine 5-powered “Tomb Raider” game.
In a statement after the news was announced, Square Enix insists it is not distancing itself entirely from western game development and its overseas studios will continue to publish franchises and titles such as “Just Cause,” “Sleeping Dogs,” “Outriders” and “Life is Strange”.
