Embracer Group AB (”Embracer”), through its wholly owned subsidiary DECA Games, has acquired Gaea’s mobile studio Jufeng and its six titles. Through the acquisition DECA Games gains access to a talent base in China, providing a foundation for further growth in the Asia Pacific Region.
DECA Games has also acquired two mobile titles, Hero Hunters and Killshot Bravo, from Hothead Games Inc. DECA Games’ internal studios in Europe will continue the live operations and development of these two titles.
In the quarter July to September 2021, the eight acquired titles in total had approximately 150,000 DAU and 800,000 MAU. Total gross revenues for the period was approximately SEK 50 million. Revenues will be included in Embracer’s accounting starting October 2021.
On 16 September 2021, the annual general meeting in Embracer Group AB resolved on a share split 2:1 whereby an existing A share and an existing B share each will be split into two new shares respectively. The board of directors was also authorized by the annual general meeting to determine the record date for the split.
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 Bytex Limited Liability Company from its current owners. Bytex is a reputable Quality Assurance (“QA”) and Work for hire-developer studio based in Saransk, Russia. Through the acquisition, Saber adds capabilities by onboarding a skilled team of more than 240 employees.
 Acquired through Embracer's wholly owned subsidiary Embracer Group Lager 2 AB and will be part of the Saber Interactive Group.
The annual general meeting 2021 (the "AGM") of Embracer Group AB ("Embracer" or the "Company") was held today on 16 September 2021 in Karlstad and the following resolutions were passed by the meeting.
You are hereby invited to the webcast in connection to the Embracer Group Annual General Meeting on September 16, 2021. At the webcast, the annual operations overview will be supplemented by selected deep dives sections and a presentation of Operating Group Gearbox Entertainment by CEO and founder Randy Pitchford and Chief Business Officer Sean Haran. Market insights will then be provided by market research firm Newzoo, a leading provider of games market data and insights.
Embracer Group today publishes its Annual Report for the financial year 2020/2021. The Annual Report is attached to this press release and available on the company’s website: https://embracer.com/investors/reports-presentations/
The extra general meeting of Embracer Group AB (“Embracer” or the “Company”) was held today on 23 August 2021, through postal voting only, and the following resolutions were passed by the meeting.
The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the annual general meeting on Thursday 16 September 2021 at 15.00 CET at Karlstad CCC Tage Erlandergatan 8 in Karlstad.
Embracer Group AB (”Embracer”), through its wholly owned subsidiary Saber Interactive Inc. (“Saber”), has entered into an agreement to acquire 100 percent of the shares in Russian-based SmartPhone Labs (”SPL”), an independent software testing and games development company for mobile, PC, consoles and VR, from its founders.
 Acquired through Embracer's wholly owned subsidiary Embracer Group Lager 2 AB and will be part of the Saber Interactive group.
Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive Inc. ("Saber"), has entered into an agreement to acquire 100 percent of the shares in OÜ Fractured Byte ("Fractured Byte"). Fractured Byte is a well-regarded game studio, with headquarters in Estonia and a team of approx. 50 developers based across Ukraine, primarily working with independent game development and porting projects. Through the acquisition, Saber onboards a creative and cost-effective studio with a founder-led team, that will continue to collaborate with Saber on development projects.
 Acquired through Embracer's wholly owned subsidiary Embracer Group Lager 2 AB and will be part of the Saber Interactive group.
Embracer Group AB (”Embracer”), through its wholly owned subsidiary Saber Interactive Inc. (“Saber”), has entered into an agreement to acquire 100 percent of the shares in Demiurge Studios, Inc. (“Demiurge”) from its current owners. Demiurge is an independent games development studio based in Cambridge, Massachusetts, US. Through the transaction, Saber onboards an experienced team of developers and strengthens its’ footprint in the US.
FIRST QUARTER, APRIL–JUNE 2021 (COMPARED TO APRIL–JUNE 2020)
> Net sales increased by 66% to SEK 3,426.6 million (2,068.7).
> Net sales of the Games business area increased by 83% to SEK 2,960.9 million (1,622.1). THQ Nordic SEK 668.7 million (487.8), Koch Media Publishing SEK 637.6 million (612.7), Coffee Stain SEK 190.7 million (172.5), Saber Interactive SEK 304.9 million (349.2), DECA Games SEK 145.6 million (-), Gearbox Entertainment SEK 437.0 million (-) and Easybrain SEK 576.4 million (-).
> Net sales of Partner Publishing/Film business area increased by 4% to SEK 465.7 million (446.5).
> EBITDA increased by 59% to SEK 1,532.2 million (965.2), corresponding to an EBITDA margin of 45% (47%).
> Operational EBIT increased by 79% to SEK 1,271.3 million (711.8) corresponding to an Operational EBIT margin of 37% (34%).
> Cash flow from operating activities amounted to SEK 617.3 million (732.3). Investments in intangible assets amounted to SEK 828.7 million (494.5). Free Cash Flow amounted to SEK –259.7 million (204.1).
> Adjusted earnings per share was SEK 2.30 (1.51).
> Organic growth in constant currency for the Games Business Area amounted to 10% in the quarter.
> Total game development projects increased 44% to 180 (125).
> Total headcount increased 98% to 7,886 (3,975) where total game developers increased 101% to 6,387 (3,185).
Embracer Group hereby invites you to a presentation in connection with the publication of the interim report for the first quarter, the period April-June 2021. The report will be published at 06.00 (CEST) on August 18th and available as of this time at: www.embracer.com
The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the extra general meeting on Monday 23 August 2021.
Embracer Group hereby invites you to a presentation on the occasion of this morning's press releases announcing a number of acquisitions.
INSIDE INFORMATION: Embracer Group AB (“Embracer”) and its subsidiaries have as previously communicated this morning entered into eight acquisition agreements (the Transactions”).The Transactions improve the group's capabilities within mobile publishing and development, indie development, VR development as well as story driven, retro shooter and other development for PC/consoles. The acquired businesses are expected to contribute to Embracer’s net sales in the range of SEK 2,000-3,000 million and to Operational EBIT in the range of SEK 350-550 million during the next financial year, ending March 31, 2023. For the remaining quarters of the current financial year ending March 31, 2022, the run rate contribution is expected to be in the lower end of the above-mentioned ranges. Crazy Labs is the most impactful contributor, both in net sales and Operational EBIT, and is estimated to be completed in the back end of the current quarter ending September 30, 2021.
The aggregated day one purchase price for the Transactions amounts to approximately SEK 2.7 billion in total, on a cash and debt free basis. Approximately SEK 2.1 billion is paid in cash and SEK 0.6 billion is paid in newly issued Embracer B shares. To create long term alignment, a maximum additional consideration amounting to SEK 2.0 billion on an aggregated basis, which is subject to fulfilment of agreed milestones, both operational and financial, over a period of up to eight years has been agreed. The additional consideration comprises of a maximum of approximately SEK 1.0 billion to be paid in cash and approximately SEK 1.0 billion to be paid in Embracer B shares. All shares are issued at a price corresponding to the volume weighted average price per Embracer B share at Nasdaq First North Growth Market during 20 trading days preceding (but not including) the date of signing of each of the Transactions. Thus, the price per share range from SEK 223.20 to SEK 231.93. The aggregated maximum consideration amounts to SEK 4.7 billion. The estimated surplus value that will be in the preliminary PPA amounts to approx. SEK 4.5 billion. This will be amortized according to Embracer's current accounting principles straight over 5 years.
The management teams of acquired companies have ambitious plans for profitable growth in the coming years and the earn outs are constructed to incentivize this. For illustrative purposes, to achieve the maximum additional consideration the acquired companies combined must generate an aggregated Operational EBIT exceeding SEK 6 billion plus achieving certain operational targets by the financial year ending March 2029. To achieve the maximum consideration milestone on year five, the acquired companies combined must exceed SEK 1 billion in Operational EBIT for the financial year ending March 2026 plus achieving certain operational targets.
The total number of shares that are issued as part of the aggregate consideration, excluding shares issued as part of earn-out structures, amounts to approximately 2,568,695 Embracer B shares. The part of the additional consideration consisting of Embracer B shares amounts to a maximum of approximately 4,375,488 shares provided that all earn out targets are met. In total, approximately 6,944,183 B shares are issued. All shares being part of the additional consideration are issued at closing of the Transactions and subject to claw back rights and lock-up restrictions. The share issues are made partly pursuant to the authorization granted by the extra general meeting held on 26 February 2021 and partly pursuant to the extra general meeting to be held on 23 August 2021, for which a notice will be announced separately shortly.
Embracer Group AB (“Embracer”) has entered into an agreement with the owners of Varyag Group AB (doing business as Grimfrost) to acquire 70 percent of Varyag Group AB. Grimfrost is an e-commerce specialist and a leading player with a global brand within high-quality Viking merchandise.
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 3D Realms Entertainment ApS ("3D Realms"). 3D Realms, based in Aalborg, Denmark, is a game publisher with 30+ years of heritage in the industry and the creators of cult game series Duke Nukem. Through the acquisition, Saber onboards an experienced Danish publisher with an owner-led management team that will work closely with the Saber team going forward.
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 Slipgate Ironworks ApS ("Slipgate") and 40 percent of the shares in 3D Realms Entertainment ApS. Slipgate, based in Aalborg, Denmark, is a game development studio with long experience in collaborating with leading publishers and IP-owners on a broad range of projects. Through the acquisition, Embracer onboards a strong team with proven expertise in development, co-development and porting.
Embracer Group AB (”Embracer”), through its wholly owned subsidiary Koch Media GmbH (”Koch Media”), has entered into an agreement to acquire 100 percent of the shares in the France-based DigixArt from its current owners. DigixArt is a development studio and the creator of “Lost in Harmony”, “11-11 Memories Retold” and upcoming title “Road 96”.
Embracer Group is the parent company of businesses developing and publishing PC, console and mobile games for the global games market. The Group has an extensive catalogue of over 240 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency, World War Z and Borderlands, amongst many others.
With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its eight operative groups: THQ Nordic GmbH, Koch Media GmbH/Deep Silver, Coffee Stain AB, Amplifier Game Invest, Saber Interactive, DECA Games, Gearbox Entertainment and Easybrain. The Group has 83 internal game development studios and is engaging more than 8,500 employees and contracted employees in more than 40 countries.