Tomb Raider

Square Enix’s Western Studios Including Crystal Dynamics And The Tomb Raider Franchise Just Got Acquired By Embracer Group

A huge acquisition

This is one we absolutely didn’t see coming. Embracer Group, the massive company that owns publishers such as THQ Nordiq, Koch Media and Gearbox Entertainment as well as many others has just acquired all of Square Enix’s western studios including Crystal Dynamics, Eidos Montreal and Square Enix Montreal for $300 million dollars.

This includes over 1,100 staff as well as original IP including the likes of Tomb Raider, Deux EX, Thief, Legacy of Kain and more than 50 back catalogue games from Square Enix roster.

More recently Crystal Dynamics were responsible for games such as Marvel’s Avengers, Eidos Montreal recently made the Marvel’s Guardians of the Galaxy game and Square Enix Montreal had more recently created mobile games in the Deus Ex, Tomb Raider and Hitman spaces.

In a blog post on Embracer’s website, the announcement stated:

Embracer Group AB (”Embracer”) 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. The company today reiterates its current Operational EBIT forecast for FY 21/22, FY 22/23, and FY 23/24. The transaction is subject to various regulatory and other external approvals and is expected to close during the second quarter of Embracer’s financial year 22/23 (July-September 2022).

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Further to this, both Square Enix and Embracer provided the below comment.

”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,” says Lars Wingefors, Co-founder and Group CEO, Embracer Group.

”Embracer is the best kept secret in gaming: a massive, decentralized collection of entrepreneurs whom we are thrilled to become a part of today. It is the perfect fit for our ambitions: make high-quality games, with great people, sustainably, and grow our existing franchises to their best versions ever. Embracer allows us to forge new partnerships across all media to maximize our franchises’ potential and live our dreams of making extraordinary entertainment,” says Phil Rogers, Square Enix America and Europe CEO.