Putting the 'role' back in role-playing games since 2002.
Donate to Codex
Good Old Games
  • Welcome to rpgcodex.net, a site dedicated to discussing computer based role-playing games in a free and open fashion. We're less strict than other forums, but please refer to the rules.

    "This message is awaiting moderator approval": All new users must pass through our moderation queue before they will be able to post normally. Until your account has "passed" your posts will only be visible to yourself (and moderators) until they are approved. Give us a week to get around to approving / deleting / ignoring your mundane opinion on crap before hassling us about it. Once you have passed the moderation period (think of it as a test), you will be able to post normally, just like all the other retards.

Embracer Group acquires Square Enix's Western studios and IPs (Deus Ex, Thief, Tomb Raider, etc)

lycanwarrior

Scholar
Joined
Jan 1, 2021
Messages
1,168
https://twitter.com/Wario64/status/1521010532655923200

Embracer Group has entered into an agreement to acquire studios Crystal Dynamics, Eidos-Montréal, Square Enix Montréal, & a catalogue of IPs including Tomb Raider, Deus Ex, Thief, Legacy of Kain & more than 50 back-catalogue games from Square Enix Holdings

Holy shit!!!
 

Curratum

Guest
Now I wish Skacky hadn't started over at Arkane, so he could work on a new Thief instead of a new Dishonored :D
 

Infinitron

I post news
Staff Member
Joined
Jan 28, 2011
Messages
97,228
Codex Year of the Donut Serpent in the Staglands Dead State Divinity: Original Sin Project: Eternity Torment: Tides of Numenera Wasteland 2 Shadorwun: Hong Kong Divinity: Original Sin 2 A Beautifully Desolate Campaign Pillars of Eternity 2: Deadfire Pathfinder: Kingmaker Pathfinder: Wrath I'm very into cock and ball torture I helped put crap in Monomyth
Embracer's press release: https://embracer.com/release/embrac...nd-square-enix-montreal-amongst-other-assets/

EMBRACER GROUP ENTERS INTO AN AGREEMENT TO ACQUIRE EIDOS, CRYSTAL DYNAMICS, AND SQUARE ENIX MONTRÉAL AMONGST OTHER ASSETS

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).

Embracer will hold a webcast presentation for investors, analysts and media on 2 May 2022 at CET 09.00. Please find details in a separate invitation that will follow this release.

”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.
Background and rationale

The collection of studios represents a world-class creative team of ~1,100 employees across three studios and eight global locations, including two of the most reputable AAA studios across the industry in Crystal Dynamics and Eidos Montréal. The studios possess a unique ability to deliver blockbuster hits decade after decade. The acquisition brings a compelling pipeline of new installments from beloved franchises and original IPs, including a new Tomb Raider game. The acquisition builds on Embracer’s mission of creating a leading independent global gaming and entertainment ecosystem. Embracer has been particularly impressed by the studios’ rich portfolio of original IP, housing brands with proven global potential such as Tomb Raider and Deus Ex, as well as demonstrating the ability to create AAA games with large and growing fan bases. There are compelling opportunities to organically grow the studios to maximize their commercial opportunities.

The portfolio of IP consists of iconic franchises appreciated by critics and players alike. For example, two original IPs, Tomb Raider and Deus Ex, have sold AAA units of ~88M and ~12M, respectively. Embracer sees an opportunity to invest in these franchises, as well as the additional acquired IPs such as Legacy of Kain, Thief, and other original franchises. The acquisition also includes the continued sales and operations of the studios’ more than 50 back-catalogue games.

Founded in 1992, Crystal Dynamics consists of almost 300 employees across San Mateo, CA; Bellevue, WA; and Austin, TX. The studio is committed to creating narrative-focused AAA action-adventure games and is led by 30+ year veteran Scot Amos. Prior AAA releases from the studio include Rise of the Tomb Raider and Legacy of Kain Defiance. Crystal Dynamics is actively working on several AAA projects, including the next mainline Tomb Raider game that will deliver next-generation storytelling and gameplay experiences.

Founded in 2007, Eidos Montréal consists of almost 500[1] employees across Montréal, Canada; Sherbrooke, Canada; and Shanghai, China. The studio focuses on creating memorable AAA experiences focused on unique stories and strong characters within the action-adventure and RPG genres. The studio is led by David Anfossi, who has 26 years of industry experience. Prior AAA releases include Thief 4, Deus Ex Human Revolution, and Shadow of the Tomb Raider. The studio is working on a host of AAA projects including both new releases from beloved franchises and original IP.

Founded in 2011, Square Enix Montréal consists of almost 150 employees across Montréal, Canada and London, UK. The studio focuses on building mobile games that players will want to return to for years to come. The studio is led by Patrick Naud, who has 24 years of industry experience. The studio is uniquely talented in creating mobile experiences based on traditionally PC/Console IPs such as Hitman, Tomb Raider, and Deus Ex. The studio will continue to develop and operate memorable mobile games based on AAA IP.

After closing this transaction, the US will be Embracer’s #1 country by number of game developers and Canada will be #2. In total, post pending closings, Embracer will have more than 14,000 employees, 10,000 engaged game developers, and 124 internal studios. Embracer’s upcoming content pipeline includes more than 230 games with more than 30 AAA games. This acquisition will bring additional scale to Embracer’s current AAA segment, and Embracer will have one of the largest pipelines of PC/Console games content across the industry, across all genres. As Embracer’s pipeline matures, this will be a key driver for organic growth in net sales, operational EBIT, and free cash flow.

Currently, Embracer’s development resources are fully utilized either by ongoing internal development projects or by projects financed by external publishers. Embracer’s teams dedicated to work-for-hire services to external studios and publishers are also fully utilized across all territories. The lack of available resources in the industry and demand for these services exceeds our available capacity. Through this acquisition, Embracer will augment its development capabilities specifically within the AAA segment, which will provide opportunities to accelerate organic growth.

Embracer believes there will be an increasingly strong demand for high-quality content, including AAA single-player games, over the decade. We aim to continue working with leading platforms and license holders and to form deeper strategic relationships with a handful of leading companies in the industry. Furthermore, synergies across Embracer’s ecosystem benefit our people and companies. Our approach is that quality comes first in games development, which is why we believe our decentralized operating model of empowering management teams while facilitating synergies positions Embracer for sustainable long-term success.

Financial outlook for the acquired companies

Embracer has conducted customary due diligence as part of our M&A execution process both with external and internal teams including a more extensive commercial due diligence to fully understand the acquired businesses. We firmly believe that the studios will excel under Embracer’s operating model and ownership.

Embracer expects significant net sales and operational EBIT contribution once the new slate of AAA pipeline titles releases. Embracer’s base case financial plan implies that the combined acquired companies will be breakeven or have a smaller Operational EBIT contribution to the upcoming two financial years driven mainly by sales of the back-catalogue titles. This could change positively if the company decides to enter a deeper strategic relationship with one or more platforms around the upcoming pipeline. When the product pipeline matures in the years thereafter, Embracer expects the acquired companies to generate on average at least SEK 500 million in operational EBIT per year with notable upside potential. Further details around financials will be communicated at a later stage post-closing.

Financing and current trading
  • Embracer has secured additional long-term debt funding commitments of SEK 4.0 billion and extended one existing loan of SEK 6.0 billion with our Nordic relationship banks Nordea, SEB, and Swedbank.
  • The additional bank funding commitment will finance our current M&A pipeline, including today’s transaction.
  • With the inclusion of the new facility, we estimate to have more than SEK 10.0 billion in available cash and credit facilities by today’s date.
  • We estimate current average net interest cost across the group is expected to be approximately 1.0% including the new facility.
  • Under the new terms, Embracer does not hold any short-term debt on the balance sheet. We do not have any debt that expires before 30 June 2023.
  • Embracer expects strong growth in free cash flow during FY22/23 and the years beyond. We remain committed to delivering on our financial leverage target. If net debt temporarily exceeds 1.0x net debt to operational EBIT on a forward 12 months basis, our intent is to return to below 1.0x net debt to operational EBIT over the medium term.
  • Current trading: The company today reiterates its current forecast (last dated February 17, 2022) of operational EBIT for FY21/22, FY22/23, and FY23/24.
Purchase price

The total purchase price amounts to USD 300 million on a cash and debt free basis, to be paid in full at closing.

Completion of the transaction

The transaction is subject to various regulatory and other external approvals. It is expected to be completed during the second quarter of Embracer’s financial year 22/23 (July-September 2022).

Advisors

Juno Capital Partners acted as M&A and strategic advisor to Embracer. Baker McKenzie acted as legal counsel. EY acted as financial and tax advisor.

Square Enix's press release: https://www.hd.square-enix.com/eng/news/pdf/20220502 A_Press Release_fin.pdf
 

Belegarsson

Think about hairy dwarfs all the time ( ͡° ͜ʖ ͡°)
Patron
Joined
Oct 20, 2015
Messages
1,261
Location
Uwotopia
Steve gets a Kidney but I don't even get a tag.
Realistically which studio can handle a new Thief? I feel like they would book Night Dive for a remaster of The Dark Project first, but when it comes to Thief 5 it's not like there are a lot of choices out there.
 
Joined
May 5, 2014
Messages
1,677
Well this is an interesting development.
I can't imagine them giving Spector the opportunity to make a DX sequel though. [Not that anyone would want that]
 

vortex

Fabulous Optimist
Joined
Mar 25, 2016
Messages
4,221
Location
Temple of Alvilmelkedic
Holy shit. Deus Ex and Thief, I'm drooling all over the place.
Guys, lets start a new immersive sim thread for to make wise decisions so that Deus Ex and Thief become successful franchises and not fallen into abyss.
 

Wunderbar

Arcane
Joined
Nov 15, 2015
Messages
8,809
https://www.shacknews.com/article/1...ed-by-eidos-montreal-with-embracer-group-deal

Deus Ex IP will be revived by Eidos Montreal with Embracer Group deal

"At this time, we are crazy people who have decided to revive the Deus Ex IP as our first game," Eidos Montreal Studio Head David Anfossi said during the Embracer Group conference call. "A new team, a very complex production, a new tech, and a new studio, an easy challenge."

Anfossi notes that, like the new Tomb Raider, the new Deus Ex will utilize new Unreal Engine 5 technology.

"a new studio".
 

Konjad

Patron
Joined
Nov 3, 2007
Messages
3,930
Location
Strap Yourselves In Codex Year of the Donut Codex+ Now Streaming! Torment: Tides of Numenera Wasteland 2 Steve gets a Kidney but I don't even get a tag.
Didn't THQ Nordic make Gothic remake being made by some random Spaniards without experience? There goes my hope for any other decent nu-DE. These series were just killed this moment.
 

RapineDel

Augur
Joined
Jan 11, 2017
Messages
423
https://www.shacknews.com/article/1...ed-by-eidos-montreal-with-embracer-group-deal

Deus Ex IP will be revived by Eidos Montreal with Embracer Group deal

"At this time, we are crazy people who have decided to revive the Deus Ex IP as our first game," Eidos Montreal Studio Head David Anfossi said during the Embracer Group conference call. "A new team, a very complex production, a new tech, and a new studio, an easy challenge."

Anfossi notes that, like the new Tomb Raider, the new Deus Ex will utilize new Unreal Engine 5 technology.

"a new studio".

This article was missing context, apparently they were just talking about their history and how they revived Deus Ex as the very first game they made. Scummy "journalism", or maybe just typically brain dead.
 

Riskbreaker

Guest
https://www.shacknews.com/article/1...ed-by-eidos-montreal-with-embracer-group-deal
Deus Ex IP will be revived by Eidos Montreal with Embracer Group deal
What about Thief?
I've no interest in a brand new Thief as Thief. That the originals stayed a rounded trilogy, as much as that might've been accidental, makes them more valuable and unique. To become a franchise, to become infinite repetition of the same, that is the ideology of a tumour and death of meaning.
And Thief as a name, as a sign separated from its original creators and their context, is not something to be excited about in and by itself. But we are in this age of floating detritus, one is fascinated by it, one grabs it from the muck, adds a new coat of paint over it or else combines it with other detritus.
 

vortex

Fabulous Optimist
Joined
Mar 25, 2016
Messages
4,221
Location
Temple of Alvilmelkedic
Methinks this move will clear the way for Square-Enix getting nestled like a Russian doll into Sony.
Actually for Square Enix only Tomb Raider was successful franchise. Deus Ex and Thief weren't so they are quite hesitant to make new games which are now even more expensive to make. Deus Ex and Thief are very risky move.


I expect to see new Thief this E3 since it has been too long we haven't seen anything about it.
 
Last edited:

Reever

Scholar
Patron
Joined
Jul 4, 2018
Messages
534
Methinks this move will clear the way for Square-Enix getting nestled like a Russian doll into Sony.
Actually for Square Enix only Tomb Raider was successful franchise. Deus Ex and Thief weren't so they are quite hesitant to make new games which are now even more expensive to make. Deus Ex and Thief are very risky move.
Deus Ex sold well, but it doesn't matter because of Square Enix's attitude towards their western studios/IPs where unless they sell 10 trillion copies they "didn't meet expectations". Even Tomb Raider didn't escape their bullshit. https://www.eurogamer.net/tomb-raider-has-sold-3-4-million-copies-failed-to-hit-expectations
Meanwhile their JP studios releases some garbage Switch games that nobody plays and they get a pat on the back.
Fuck them for canning Sleeping Dogs, one of the few open-world popamoles I actually enjoyed.
 
Last edited:

toughasnails

Guest
I'm surprised that SE let TR go, it's their one really big Western IP. But them removing ballast so to say might indeed be a sign that the acquisition by Sony is incoming.

As for what this might mean for these IPs:
HD rereleases of Thief games are now possible, Night Dive guys actually tweeted how they'd love to do it some time ago but I assumed there is zero interest on SE's part. Maybe HD collection of 90s TR games, something that might attract more people to their style as the controls sadly remained a big turn off for younger gamers. New TR is a given. I think new Deus Ex is much more likely than a new Thief.
 
Joined
Aug 10, 2012
Messages
5,869
300 million for all these IPs seems to be dirt cheap. S-E must have been really jonesing to get rid of them.
 

As an Amazon Associate, rpgcodex.net earns from qualifying purchases.
Back
Top Bottom