News & Media

Announcement from Embracer Group’s Annual General Meeting

The annual general meeting 2020 (the "AGM") of Embracer Group AB ("Embracer" or the "Company") was held today on 16 September 2020 in Karlstad and the following resolutions were passed by the meeting.

Embracer Group acquires Vertigo 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 Koch Media GmbH, has today entered into an agreement to acquire 100 percent of the share capital in Dutch-based Vertigo Games Holding B.V. (“Vertigo Games”). Vertigo Games is a company that develops, publishes and distributes games exclusively for VR. It is behind the million-selling and award-winning global hit Arizona Sunshine, and has highly anticipated After the Fall in its pipeline.

The upfront equity purchase price amounts to EUR 50 million in total, where EUR 40 million is paid in cash and EUR 10 million is paid in newly issued B shares. This equals an upfront enterprise value of approximately EUR 45 million, adjusted for EUR 5 million in acquired net cash. Subject to fulfilment of agreed earnings targets and release of certain titles during a up to 10 years period an earn-out consideration of a maximum of EUR 65 million may be paid, where a maximum of EUR 25 million will be paid in cash and a maximum of EUR 40 million will be paid in newly issued B shares.

A company presentation of Vertigo Games will take place in connection with today's Annual General Meeting on September 16, 2020.

Invitation: Embracer Group’s Annual General Meeting including selected deep dive information

You are hereby invited to the webcast in connection to the Embracer Group Annual General Meeting on September 16, 2020. At the webcast, the annual operations overview will be supplemented by a deep dive in Embracer Group’s M&A strategy, a presentation of Operating Group THQ Nordic by Co-Founders Klemens Kreuzer and Reinhard Pollice and management’s comments on market development post covid-19 lockdowns, among other topics.

Embracer Group publishes Annual Report 2019/2020

Embracer Group today publishes its Annual Report for the financial year 2019/2020. The Annual Report is enclosed this press release and also available at the company’s website: https://embracer.com/investors/reports-presentations/

NOTICE OF ANNUAL GENERAL MEETING IN EMBRACER GROUP AB

The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the annual general meeting on Wednesday 16 September 2020 at 15.00 CET at Elite Stadshotellet, Kungsgatan 22 in Karlstad.

Embracer Group acquires Sola Media

Embracer Group wholly owned subsidiary Koch Film acquires Sola Media. The company, based in Stuttgart, Germany, is a sales agent of international film-and TV-rights, distributing children and family films across the globe.

Embracer Group acquires Pow Wow Entertainment

Embracer Group wholly owned subsidiary THQ Nordic GmbH acquires 100% of Austria-based Pow Wow Entertainment for an undisclosed consideration.

Embracer Group acquires Palindrome Interactive

Amplifier Game Invest, a wholly owned subsidiary of Embracer Group, acquires the remaining 50% of the shares in Palindrome Interactive, a 14-person strong game studio located in Skövde, Sweden. The acquisition makes Palindrome Interactive a wholly owned subsidiary of Amplifier Game Invest.

Embracer Group acquires Rare Earth Games

Amplifier Game Invest, a wholly owned subsidiary of Embracer Group acquires the Austria-based development studio Rare Earth Games with a team of highly experienced industry veterans. The acquisition marks the first investment by Amplifier Game Invest in Austria. Rare Earth Games focus on action-packed multiplayer game titles for PC, Consoles and Cloud services.

Embracer Group acquires Vermila Studios

Embracer Group’s wholly owned subsidiary Amplifier Game Invest acquires the ten-person strong game development studio Vermila Studios.

Embracer Group acquires Deca 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 share capital in Germany-based Deca Live Operations GmbH (“DECA”).

DECA Games, founded by Ken Go, who is also the seller, is a mobile asset care and live operations (“LiveOps”) expert within the Free-to-Play (“FTP”) games segment. Through the acquisition, Embracer Group adds a strong team forming a key pillar in building a growing and profitable mobile and FTP business within the group while DECA will benefit from Embracer’s IP catalog, access to capital and deal flow. The upfront purchase price amounts to approximately MEUR 25 and is paid in newly issued B shares, plus an earn-out consideration, subject to fulfilment of agreed earnings targets, of a maximum of approximately MEUR 60.

Embracer Group acquires New World Interactive

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, has today entered into an agreement to acquire 100 percent of the shares in US/Canada based New World Interactive LLC (“NWI”). NWI is an award-winning indie-spirited creator and developer of First-Person-Shooter (“FPS”) IPs for PC founded in 2010 in North America. Through the acquisition, Embracer Group adds its first studio in Canada and establishes a strong foothold for further growth.

NWI consists of a passionate team of approximately 40 people headquartered in Denver, CO (USA) with a development studio in Calgary, AB (Canada) including approximately 35 game developers led by Keith Warner (CEO). NWI has released three proprietary PC titles, developed a dedicated fanbase of more than 10 million gamers and is working with an exciting project pipeline with the potential to achieve AAA results in the marketplace. The purchase price will not be disclosed. Embracer expects to recoup its investment over the course of approximately 3 years as current development projects are released. Closing of the transaction is conditional upon customary conditions and closing is expected to take place during the [third calendar quarter 2020].

Embracer Group acquires 4A Games

Embracer Group AB ("Embracer"), through its wholly-owned subsidiary Saber Interactive[1], has today entered into an agreement to acquire 100 percent of Malta-based 4A Games Limited (“4A Games”). 4A Games is a top-tier independent AAA PC and Console developer behind the successful Metro franchise and a long-term development partner to the Embracer owned publisher Deep Silver. Through the acquisition, Saber Interactive onboards a reputable team of 150+ people across two studios in Malta and Ukraine as well as best-in-class internally developed and owned First-Person-Shooter (“FPS”) technology to the Group. The upfront purchase price amounts to approximately MUSD 36 on a cash and debt free basis and is paid in cash and in newly issued B shares, plus an earn-out consideration, subject to fulfilment of agreed milestones, of a maximum USD 35 million. 4A Games expects net sales of approximately MEUR 20 for the period Jan-Dec 2020, with an operational EBIT of approximately MEUR 12.

Embracer Group publishes Interim Report Q1, April-June 2020: OPERATIONAL EBIT INCREASED 249% TO SEK 712 MILLION

FIRST QUARTER, APRIL–JUNE 2020 (COMPARED TO APRIL–JUNE 2019)

• Net sales increased by 81% to SEK 2,068.7 million (1,142.0). Net sales of the Games business area increased by 153% to SEK 1,622.1 million (641.3). Net sales of Partner Publishing/ Film business area decreased to SEK 446.5 million (500.7).
• EBITDA increased by 148% to SEK 965.2 million (389.5), corresponding to an EBITDA margin of 47%.
• Operational EBIT increased by 249% to SEK 711.8 million (204.0) corresponding to an Operational EBIT margin of 34% (18%).
• Cash flow from operating activities before changes in working capital amounted to SEK 869.8 million (306.0).
• Cash flow from operating activities amounted to SEK 732.3 million (441.3).
• Earnings per share was SEK 0.26 (0.17).
• Adjusted earnings per share was SEK 1.51 (0.51).

Invitation to Embracer Group’s Q1 presentation

Embracer Group hereby invites you to a presentation in connection with the publishing of Q1, the first quarterly report for the fiscal year 2020/2021, April-June 2020. The report will be published at 06.00 (CET) on August 13^th and available as of this time at www.embracer.com.

Matthew Karch joins Embracer Group’s Board of Directors

The Extraordinary General Meeting of Embracer Group AB (publ) held today, has elected Matthew Karch as a new board member. Matthew has a solid industry background, and for the past 19 years, Matthew has served as CEO of Saber and has grown the company from a two-person studio to one of the larger independent developers in the industry.

Embracer Group publishes Full Year Report and Q4, January-March 2020: OPERATIONAL EBIT INCREASED 35% TO SEK 1,033 M FOR THE FINANCIAL YEAR

FOURTH QUARTER, JANUARY–MARCH 2020 (COMPARED TO JANUARY–MARCH 2019)

• Net sales were SEK 1,339.1 million (1,630.5). Net sales of the Games business area decreased to SEK 903.5 million (1,034.9). Net sales of Partner Publishing/Film business area decreased to SEK 435.6 million (595.6), mainly due to the covid-19 pandemic closing of retail outlets towards the end of the quarter.
• EBITDA amounted to SEK 495.2 million (618.6), corresponding to an EBITDA margin of 37%.
• Operational EBIT amounted to SEK 286.0 million (395.9) corresponding to an Operational EBIT margin of 21%.
• Cash flow from operating activities before changes in working capital amounted to SEK 384.6 million (527.1).
• Cash flow from operating activities amounted to SEK 765.7 million (777.2).
• Earnings per share was SEK 0.42 (0.37).
• Adjusted earnings per share was SEK 0.97 (1.00).

FULL YEAR, APRIL 2019–MARCH 2020 (COMPARED TO APRIL 2018–MARCH 2019)

• Net sales increased 3% to SEK 5,249.4 million (5,121.2). Net sales of the Games business area grew 31% to SEK 3,196.5 million (2,447.1), whereas the Partner Publishing/Film business area decreased to SEK 2,052.9 million (2,674,1).
• EBITDA increased 33% to SEK 1,821.3 million (1,366.7), corresponding to an EBITDA margin of 35%.
• Operational EBIT rose 35% to SEK 1,033.0 million (765.8), corresponding to an Operational EBIT margin of 20%.
• Cash flow from operating activities before changes in working capital amounted to SEK 1,604.2 million (1,248.2).
• Cash flow from operating activities amounted to SEK 1,728.3 million (656.6).
• Earnings per share was SEK 0.91 (1.19).
• Adjusted earnings per share was SEK 2.81 (2.12).

Invitation to presentation of Embracer Group’s Q4 and full-year report

Embracer Group hereby invites you to a presentation in connection with the publishing of the full-year report for fiscal year 2019/2020 and the interim report for the fourth quarter, the period January-March 2020. The report will be published at 06.00 (CET) on May 20^th.

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 Wednesday 20 May 2020 at 08.30 am CET at Baker McKenzie''s premises at Vasagatan 7 in Stockholm. The doors to the meeting will open at 08.15 am CET.

Embracer Group successfully completed Direct issuance of 18.5 million new B shares raising proceeds of SEK 1,646.5 million

INSIDE INFORMATION: The Board of Directors of Embracer Group AB (“Embracer Group” or the “Group”) has, following its intention of a placement as communicated in the Group’s press release yesterday, resolved to issue 18,500,000 Class B shares, based on the authorization granted by Embracer's annual general meeting on September 17, 2019 (the “Directed new share issue”). The subscription price in the Directed new share issue is SEK 89.0 per share and has been determined through a so-called “accelerated book-building” procedure led by Carnegie Investment Bank AB (publ) and Joh. Berenberg, Gossler & Co. KG (“Berenberg” and jointly with Carnegie Investment Bank AB referred to as "Managers"). Embracer Group will receive gross proceeds amounting to SEK 1,646.5 million (approximately USD 164 million) through the Directed new share issue.