Deal
Square Enix sells Crystal Dynamics, Eidos Montréal and more than 50 brands to Embracer Group
Embracer Group acquires Square Enix's western studios, including brands such as Tomb Raider, Deus Ex and Thief, for $300 million.
Square Enix reaches an agreement with Embracer Group AB to sell its Western studios and "more than 50" IPs from its catalog. The transaction, which amounts to $300 million, is expected to close during the second quarter of the Swedish group's fiscal year 22/23, between next July and September.
Embracer Group strengthened by Square Enix
The transaction includes such popular IPs as Tomb Raider, Deus Ex, Legacy of Kain and Thief. In fact, Crystal Dynamics is currently developing the next chapter of the renowned archaeologist, which will now debut under the Embracer umbrella. Eidos-Montréal (Marvel's Guardians of the Galaxy) and Square Enix Montréal (Hitman Sniper: The Shadows) are also included as part of the deal.
"We are thrilled to welcome these studios into the Embracer Group," explained Lars Wingefors, co-founder and CEO of the company, in a press release. "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." Wingefors promises the return of "beloved franchises" and the arrival of "original IP" from Eidos Montréal.
On the other hand, the Japanese company wields in a note to investors that the sale will allow the launch of new business avenues with "investments in fields including blockchain, artificial intelligence, and the cloud". From now on Square Enix will keep its development studios in Japan, the External Studios division and Square Enix Collective. Their break with the West will not be total: they will keep the publishing rights to the Just Cause, Life is Strange and Outriders sagas. Their commitment to all three will remain intact.
Sources | Square Enix, Embracer Group