Embracer Group Acquiring Eidos Brand & More From Square Enix

The year of acquisitions continue with Square Enix selling off the majority of their Western studios and IPs for $300 million.

Embracer Group, a Swedish videogame holding company which is best known for owning over 124 internal studios and publishers such as THQ Nordic, Saber Entertainment, and Gearbox Entertainment, has entered a $300 million deal to buy Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal, along with various IPs like Tomb Raider.

Here is the official statement from Embracer:

“Embracer Group AB has entered into an agreement to acquire the development studios Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, and a catalogue of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain and more than 50 back-catalogue games from SQUARE ENIX HOLDINGS CO., LTD. (‘Square Enix Holdings’). In total, the acquisition includes ~1,100 employees across three studios and eight global locations. The total purchase price amounts to USD 300 million on a cash and debt free basis, to be paid in full at closing. Embracer has secured additional long-term debt funding commitments for this and other transactions in the pipeline.”

According to Square Enix, this deal is happening due to the company’s interest in other technologies including blockchain.

Yosuke Matsuda, president of Square Enix, announced the following: “The transaction will assist the company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the company’s core businesses in the digital entertainment domain. In addition, the transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.”

After the deal goes through, Square Enix’s game development will continue through their studios in Japan, Square Enix External Studios, and Square Enix Collective. Interestingly, despite the huge IP sale, they will keep the Just Cause, Outriders, and Life is Strange IPs.

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