Embracer Group has announced an agreement with Square Enix that will take over the Swedish company’s three development studios: Crystal Dynamics, Eidos Montréal and Square Enix Montréal. They include about 1100 employees working in eight offices in different countries.
The holding will also buy several game IPs from Square Enix, including Tomb Raider, Deus Ex, Thief, The Legacy of Kain and more than 50 games from Square Enix’s back catalog. The full list of franchises has yet to be revealed, but Square Enix has announced that it will continue to publish games like Outriders, Life is Strange and Just Cause itself.
The total value of the deal between Embracer Group and Square Enix is $300 million. Square Enix will have to pay off possible debt obligations of its studios before closing the agreement.
Square Enix noted that the sale of studios and several gaming IPs is part of an optimization of the company’s structure, which should help it adapt to changes in global business. The deal with Embracer, according to the Japanese publisher, will also allow it to launch new business sectors through investments in blockchain, cloud technologies, and artificial intelligence.
The deal is expected to close by the end of September 2022.
Which studios will Embracer buy from Square Enix
- Crystal Dynamics – developers of Marvel’s Avengers and the modern Tomb Raider trilogy
- Eidos Montréal – developers of Marvel’s Guardians of the Galaxy and Deus Ex prequels
- Square Enix Montréal – developers of mobile games on Tomb Raider, Hitman, Deus Ex
Which game franchises will Embracer buy from Square Enix
- Deus Ex
- Legacy of Kain
- tomb raider