Square Enix sells dev studios and IP addresses for Tomb Raider, Deus Ex to Embracer

Swedish video game publisher Embracer announced on Monday that it has acquired three development studios responsible for hit games such as Tomb Raider and Deus Ex from Japanese publisher Square Enix.

The acquisition of the three North American studios Crystal Dynamics, Eidos-Montreal and Square Enix Montreal, totaled $300 million (about Rs 2,295 crore) and affects about 1,100 employees, Embracer said in a statement.

It also included intellectual properties (IP) from several top-selling franchises, such as Tomb Raider, featuring British adventurous archaeologist Lara Croft, who has been a video game character icon since her debut in 1996.

“We are delighted to welcome these studios to the Embracer group. We recognize the fantastic intellectual property, world-class creative talent and track record of excellence that have been demonstrated time and time again over the past decades,” Lars Wingefors, co-founder and CEO of Embracer, said in a statement.

Other well-known IPs included in the deal were sci-fi role-playing game Deus Ex and Thief, where players must focus on stealth as they don the robes of a master thief.

The purchase is subject to regulatory approval and is expected to be completed between July and September, the group said.

Following the closing of the transaction, Embracer, which has been in the process of being acquired for several years, will have more than 14,000 employees and 124 in-house game development studios.

Embracer also mentioned that it “sees an opportunity to invest in franchises like Tom Raider, Deus Ex, as well as additional acquired IPs such as Legacy of Kain, Thief, and other original franchises. The acquisition also includes continued sales and operations of more than 50 games from the studios’ back catalog.

Embracer, formerly known as THQ Nordic, is based in the city of Karlstad in western Sweden.

In a separate statement, Square Enix said that “this decision is based on the policy of optimizing the structure of the company”, which it had described in its “mid-term business strategy”, announced in May 2021.

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