Square Enix has announced that multiple Western studios and IPs are to be acquired by the Embracer Group in a surprise deal from out of nowhere that costs (only) $300 Million in cash. The deal is expected to close sometime between July-September 2022.

Square Enix Studios and IPs included

According to a press release from Square, they have signed a “share transfer agreement” with Sweden-based Embracer Group that will include the following studios and IPs, including over 1,100 employees across the studios:

• Crystal Dynamics
• Eidos Montreal
• Square Enix Montreal
• Deux Ex
• Tomb Raider
• Legacy of Kain
• “more than 50 back-catalogue games”

Among the acquisitions, the latest Tomb Raider game will also be a part of the transfer.

Lars Wingefors, Co-founder and Group CEO of the Embracer Group, shares that ”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.”

The Embracer group now holds over 100 studios and developers under its belt, including the likes of Gearbox Software, THQ Nordic, and Saber Interactive.

As to why Square Enix would sell, their press release states interest to launch new blockchain, AI, and cloud-related businesses.

The Transaction will assist the Company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the Company’s core businesses in the digital entertainment domain. In addition, the Transaction enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.

Square Enix mentions that its development function will now comprise of its Japan studios, SE External Studios, and SE Collective.