Embracer Group announced that it has agreed to acquire Square Enix-owned studios Crystal Dynamics, Square Enix Montréal, Eidos Montréal, and studio-related IPs, including Tomb Raider, Legacy of Kain, and Deus Ex.
Square Enix stated that the transaction will benefit the acceleration of investments in areas such as blockchain, artificial intelligence, and the cloud.
The total cost of the purchase is worth $300 million in cash. The deal is expected to be completed in the second quarter of 2022, between July and September. The deal covers more than 1,100 employees across eight locations and three studios, though no comment has been made on layoffs as a result of the acquisition.
Square Enix America and Europe CEO Phil Rogers made the following comments;
“Embracer is the best-kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today. Embracer allows us to forge new partnerships across all media and to maximize our franchises’ potential”.
The deal covers many of Square Enix’s major IPs. The firm said its overseas studios will continue to release franchises such as Just Cause, Outriders and Life is Strange.
Lars Wingefors, Co-Founder and Group CEO of Embracer Group, said in his speech:
“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.”