News & Media

Estimated net sales of SEK 850-1,050 million and SEK 300-400 million in operational EBIT added during FY 2021/2022

INSIDE INFORMATION: Embracer Group AB (“Embracer”) and its subsidiaries have as previously communicated this morning entered into 13 acquisition agreements (the “Acquisitions”). The acquired businesses are, during the financial year ending 31 March 2022, expected to contribute to Embracer Group’s net sales in the range of SEK 850-1,050 million and contribute to operational EBIT in the range of SEK 300-400 million. In addition, during FY 2021/2022 the expanded studio footprint is expected to bring savings on capitalized game development in the range of SEK 50-100 million. The combined operational EBIT and savings on game development are expected to be in the range of SEK 350-500 million and this profitability is expected to grow in the following years as more game development projects will be completed.

The aggregated day one purchase price for the Acquisitions amounts to approximately SEK 2.0 billion on a cash and debt free basis. Approximately SEK 1.7 billion is paid in cash and SEK 0.3 billion in newly issued Embracer B shares with a maximum additional consideration amounting to SEK 1.8 billion, which is subject to fulfilment of agreed milestones, both operational and financial, over a period of up to 10 years. The additional consideration comprise a maximum of approximately SEK 0.9 billion which may be paid in cash and a maximum approximately SEK 0.9 billion to be paid in Embracer B shares at a price corresponding to the volume weighted average price per Embracer B share at Nasdaq First North Growth Market during 20 trading days up until and including the date of signing of the Acquisitions (VWAP 20). The aggregated maximum consideration amounts to SEK 3.8 billion.

Embracer Group acquires Flying Wild Hog

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.
 
Embracer Group AB ("Embracer"), through its wholly owned subsidiary Koch Media GmbH, has today entered into an agreement to acquire 100 percent of the shares in the Poland-based Flying Wild Hog ("FWH") from Supernova Capital LLP. Flying Wild Hog is a renowned and growing independent Polish developer of AA+ PC and console games such as the critically acclaimed Shadow Warrior series. The FWH team is currently working on four projects together with well reputable external publishers. Through the acquisition, Embracer onboards a reputable team of 260+ people across three studios in Poland, adding a solid platform in an important and growing hub for game development in Europe.

The day one purchase price is equivalent to MUSD 137.2 on a cash and debt free basis and is paid in cash to Supernova Capital LLP, a well-known private equity firm in the games sector. Additionally, a management incentive program has been set up in order to align interests going forward. The incentive program amounts to a combined maximum MUSD of 7.1 in Embracer B-shares and is subject to fulfilment of agreed milestones and commitments to stay engaged in FWH over the coming 5 years.

Embracer Group acquires Silent Games

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary Amplifier Game Invest AB ("Amplifier"), has today entered into an agreement to acquire 100 percent of Silent Games Ltd. ("Silent Games"). Silent Games is a UK based studio founded by Sally Blake and Joseph Rogers, experienced developers and award-winning mentors within the British game development scene. The acquisition marks the first investment by Amplifier in the British Isles, one of the strongest hubs for Game Development in the world.

Embracer Group acquires Coffee Stain North

Embracer Group AB ("Embracer") has today entered into an agreement to acquire the remaining 40 percent of the shares in Coffee Stain North AB ("CSN"), from the nine original founders. CSN is a 22-person strong game studio located in Stockholm, Sweden. The acquisition makes CSN a wholly owned subsidiary of Coffee Stain Holding AB (“Coffee Stain”).

Embracer Group acquires Quantic Lab SRL

Embracer Group AB ("Embracer") has today entered into an agreement to acquire 95 percent of the shares in Quantic Lab SRL[1] ("Quantic Lab"). Quantic Lab, based in Cluj-Napoca, Romania, is a software outsourcing company specialized in Quality Assurance ("QA") for gaming and applications. The purchase price of MEUR 4.75 is paid in cash and represent a corresponding Enterprise Value of MEUR 5 for 100 percent ownership on a cash and debt free basis.

Embracer Group acquires IUGO Mobile Entertainment

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary DECA Games ("DECA"), has today entered into an agreement to acquire 100 percent of the shares in Canada-based IUGO Mobile Entertainment Inc. ("IUGO"). IUGO is a Canadian mobile Free-to-Play ("FTP") game developer with longstanding experience from the gaming industry consisting of a sizable team of 86 people.

Embracer Group acquires Purple Lamp Studios

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary THQ Nordic GmbH ("THQ Nordic"), has entered into an agreement to acquire 100 percent of the shares in Purple Lamp Studios (“PLS”). PLS is an independent video game developer specialized in third party IP games, based in Vienna, Austria. PLS has a longstanding partnership with THQ Nordic and has successfully delivered several titles in collaboration, including SpongeBob SquarePants: Battle for Bikini Bottom – Rehydrated. Through the acquisition, THQ Nordic onboards a longstanding partner with a team of 38 into the group with the ambition to work exclusively on titles for THQ Nordic.

Embracer Group acquires Sandbox Strategies LLC

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive[1] ("Saber"), has today entered into an agreement to acquire 100 percent of the shares in Sandbox Strategies, LLC ("Sandbox Strategies"). Sandbox Strategies, based in New York, USA, is a PR and influencer relations agency, specialized in content creation for gaming and entertainment. Through the acquisition, Embracer onboards an “earned media” group to collaborate on future innovative gaming content creation across the organization.

Embracer Group acquires Mad Head Games

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive[1] ("Saber"), has today entered into an agreement to acquire 100 percent of the shares in Mad Head Games doo Novi Sad ("Mad Head Games"). The company, based in Belgrade and Novi Sad, Serbia, is an independent game developer led by three founders with a team of 130 people across four offices in Belgrade and Novi Sad.

Embracer Group acquires 34BigThings

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive ("Saber"), has entered into an agreement to acquire 100 percent of the shares in 34BigThings (“34BT”). 34BT is a game developer of premium games across PC, console and mobile devices. 34BT is renowned as the studio behind Redout which has won 13 international awards and been awarded as the Best Italian Videogame by IIDEA in 2017. Through the acquisition, Saber onboards an experienced AA team based in Italy.

Embracer Group acquires Nimble Giant Entertainment

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive ("Saber"), has today entered into an agreement to acquire 100 percent of the shares in Argentina-based Nimble Giant Entertainment ("NGE"). NGE is the leading Latin American PC and console game developer with a reputable team of 75 people. NGE has produced more than 30 titles over almost 2 decades and several own IP games, with two of the most important titles being Champions of Regnum and Quantum League. The team exhibits further capabilities to advance into AAA productions. Through the acquisition, Saber onboards a sizable studio with leadership that has extensive experience within the gaming industry.

Embracer Group acquires Snapshot Games

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer") has today entered into an agreement to acquire 100 percent of the shares in Snapshot Games Inc. ("Snapshot Games"), and its wholly owned subsidiary Snapshot Games Sofia EOOD.  Snapshot Games will form a part of Embracer's wholly owned subsidiary Saber Interactive[1] ("Saber"). Snapshot Games, based in USA and Bulgaria, is the independent video game developer behind premium strategy title Phoenix Point. Through the acquisition, Saber brings a reputable studio of 65 people and well renowned IPs into the group.

Embracer Group acquires Zen Studios

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive (“Saber”), has today entered into an agreement to acquire 100 percent of the shares in ZEN Stúdió Kft (“Zen Studios”). Zen Studios is a game developer and publisher of interactive entertainment for all major digital game platforms. Zen Studios is the producer behind the well-established Pinball FX and Zen Pinball franchises. Through the acquisition, Saber onboards a reputable team that has generated original titles alongside collaborations with some of the most well-known entertainment studios.

Embracer Group acquires A Thinking Ape Entertainment

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

Embracer Group AB ("Embracer"), through its wholly owned subsidiary DECA Games[1], has today entered into an agreement to acquire 100 percent of the shares in the Canada-based A Thinking Ape Entertainment Ltd. ("A Thinking Ape"). Founded in 2008 and based in Vancouver, A Thinking Ape is a developer of mobile Free-to-Play (FTP) games with a social core. The day one purchase price amounts to approximately MUSD 31 equivalent to MUSD 28 on a cash and debt free basis and is paid in cash and newly issued Embracer B shares plus additional consideration over 10 years, subject to fulfilment of agreed financial milestones, of a maximum MUSD 74.  

Embracer Group publishes Interim Report Q2, July-September 2020: OPERATIONAL EBIT INCREASED 171% TO SEK 653 MILLION

SECOND QUARTER, JULY–SEPTEMBER 2020 (COMPARED TO JULY–SEPTEMBER 2019)

> Net sales increased by 89% to SEK 2,383.2 million (1,259.7). Net sales of the Games business area increased by 83% to SEK 1,495.4 million (816.1). THQ Nordic SEK 566.9 million (329.6), Deep Silver SEK 506.8 million (441.7), Coffee Stain SEK 129.9 million (44.7), Saber Interactive SEK 259.1 million (-) and DECA Games SEK 32.7 million (-).

> Net sales of Partner Publishing/Film business area increased by 100% to SEK 887.8 million (443.6).

> EBITDA increased by 132% to SEK 969.0 million (418.1), corresponding to an EBITDA margin of 41%.

> Operational EBIT increased by 171% to SEK 652.5 million (240.7) corresponding to an Operational EBIT margin of 27% (19%).

> Cash flow from operating activities amounted to SEK 804.7 million (284.8). Investments in intangible assets amounted to SEK 484.1 million (391.9). Free Cash Flow amounted to SEK 311.5 million (–115.8).

> Adjusted earnings per share was SEK 1.80 (0.65).

> Organic growth in constant currency for the Games Business Area amounted to 61% in the quarter.

> Total game development projects increased 57% to 135 (86). Total headcount increased 49% to 4,445 (2,981) where total game developers increased 58% to 3,593 (2,272).

Announcement from Embracer Group’s extra general meeting

The extra general meeting of Embracer Group AB ("Embracer" or the "Company") was held today on 16 November 2020 in Stockholm and the following resolutions were passed by the meeting.

Invitation to presentation of Embracer Group’s Q2 report

Embracer Group hereby invites you to a presentation in connection with the publishing of the interim report for the second quarter for the fiscal year 2020/2021, the period July-September 2020. The report will be published at 06.00 (CET) on November 18th and available as of this time at www.embracer.com.

Notice of extra general meeting in Embracer Group AB

The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the extra general meeting on Monday 16 November 2020 at 10.00 CET at Baker McKenzie's premises at Vasagatan 7 in Stockholm.

Embracer Group successfully completed a placement of 35,689,907 new B shares raising proceeds of more than SEK 5.75 billion

Embracer Group announces contemplated directed issue of B shares and sale of existing B shares by co-founders