Game developer company Square Enix announced on May 2, 2022, that the company has reached an agreement to sell its overseas studio, Square Enix Montreal, to Sweden-based Embracer Group AB. Embracer will be acquiring a catalogue of IPs from Square Enix Holdings Co. Ltd., including Tomb Raider, Deus Ex, Thief, Legacy of Kain and 50 other back-catalogue games.

“SQUARE ENIX HOLDINGS CO., LTD. (the “Company”) today signed a share transfer agreement with Sweden-based Embracer Group AB concerning the divestiture of select overseas studios and IP (the “Transaction”),” the company wrote in its statement.

The total value of the deal is $300 million to be paid in cash and debt free at the time of closing of the deal. The deal will go through after receiving various regulatory and other external approvals. It is expected to be completed between July-Sep 2022.

The transaction will also transfer the shares of Square Enix’s subsidiaries, CRYSTAL DYNAMICS, INC. and EIDOS INTERACTIVE CORP, to Embracer.

Square Enix said that the transaction will help the company to adapt to the changes that are underway in the global business environment, by helping them allocate resources more efficiently, which would in turn accelerate the company’s growth in the digital entertainment domain.

The transaction would also enable “the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.”

Embracer will be acquiring approximately 1,100 employees across the three studios in eight locations around the globe. The move is a nod to the Swedish based company’s mission to create a leading independent global gaming and entertainment ecosystem.

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

Once the acquisition is done, Embracer will have more than 14,000 employees, 10,000 engaged game developers, and 124 internal studios. The game developer currently has more than 230 games, including more than 30 AAA games, in its content pipeline.

Square Enix will continue to develop games such as JUST CAUSE, OUTRIDERS, and Life is Strange in its studios in Japan, Square Enix External Studios and Square Enix Collective.

Square Enix Holdings Co., Ltd. is a Japanese entertainment conglomerate and video game company best known for its Final Fantasy, Dragon Quest and Kingdom Hearts role-playing video game franchises, among numerous others.

Square Enix established it’s Square Enix Europe subsidiary in 2009, after merging with the then Eidos Interactive company. Square Enix Europe handles Square Enix’s Western studios, including Crystal Dynamics, Eidos-Montréal and Square Enix Montreal, contains Square Enix’s Western external publishing division, Square Enix External Studios and indie initiative, Square Enix Collective.

Source: Embracer, Square Enix Press release.