Embracer Group acquires eight studios, including Ghost Ship Games and Crazy Labs

Embracer Group has announced the acquisition of eight new studios, for a combined total of approximately SEK 2.7 billion. An additional SEK 2 billion will be paid if the acquired studios meet specific milestones over the next two years.

The acquired studios are Crazy Labs, Ghost Ship Games, Easy Trigger, Forcefield, DigixArt, Slipgate Ironworks, 3D Realms and Grimfrost.

Embracer expects the studios to contribute to their 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.

“I am excited to welcome more than 500 great talents across a wide range of well established businesses that further diversify and strengthen the group across the world from day one,” said Lars Wingefors, co-founder and Group CEO of Embracer. “Brick by brick we continue to improve our operating groups and consequently Embracer as a whole.

“We still have a strong balance sheet with a sizable net cash position to support further M&A going forward. We continue to have many ongoing discussions with entrepreneurs, creators and companies to join the family, including large or transformative companies that would create new operating groups. I’m looking forward to continue growing the Embracer Group both organically and in-organically the decades to come.”

Crazy Labs was pointed to as being the most impactful acquisition, both in terms of net sales and Operational EBIT.

Ghost Ship Games meanwhile will act as a sister company to fellow Danish studio Coffee Stain, meaning that “Coffee Stain is now an indie operating group with emphasis on continued organic growth as well as M&A.”

Forcefield meanwhile was specifically acquired by Vertigo Games, which has consequently more than doubled its internal development capacity.