Acquisition season continues as Embracer Group has announced it has entered an agreement to acquire a huge part of Square Enix’s western studio division which includes Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal for $300 Million.
The agreement deal doesn’t just include 1,100 employees across the three studios but a massive collection of more than 50 IPs. That includes Tomb Raider and Deus Ex, which Embracer used as examples of franchises that the publisher would like to continue to invest in. A new Tomb Raider game is already in development so it might be the first project from these newly acquired studios under the banner of the Swedish publisher.
Embracer Group added that it sees an opportunity to invest in other dormant original franchises in the deal including Legacy of Kain, Thief, and more. At this point, nothing has been confirmed if the rumoured follow-up to last year’s Marvel’s Guardian of the Galaxy will be worked on Eidos-Montréal or not, which would be a shame to not get the original team back for the sequel to the Canadian Game of the Year winner.
”We are thrilled to welcome these studios into the Embracer Group. We recognize the fantastic IP, world-class creative talent, and track record of excellence that have been demonstrated time and again over the past decades. It has been a great pleasure meeting the leadership teams and discussing future plans for how they can realize their ambitions and become a great part of Embracer,” Embracer Group CEO and co-founder, Lars Wingefors said in a statement.
Square Enix said in a statement that the deal will allow it to continue to focus on investing in the company’s core businesses as well as new investment opportunities including blockchain, AI, and the cloud. The deal is only for its internal western studios as Square Enix states it isn’t distancing its way from Western games as it still is publishing franchise owned-IP titles from its western external partners including Life is Stange, Just Cause, and Outriders.
The acquisition was announced during a webcast presentation for investors, analysts, and media, the total purchase price amount of $300 million USD is “on a cash and debt-free basis, to be paid in full at closing.” The transaction is set to be finalized sometime during the Swedish company’s next financial quarter, happening from July to September 2022.