News broke on August 5th 2021 about Embracer Group acquiring CrazyLabs and seven other companies. Those are Ghost Ship Games, Easy Trigger, Force Field, DigixArt, Slipgate Ironworks, 3D Realms, and Grimfrost.
This is quite surprising as CrazyLabs acquired the hyper-casual games developer Firescore Interactive just a day before this deal. CrazyLabs will continue to operate independently as a publisher and developer. Embracer see the acquisition as a way to further expand into the mobile market.
The total price for them all is $315 million with no exact amounts specified for each company.
Lars Wingefors, co-founder and Group CEO of Embracer, released a statement on the acquisitions. He welcomed the over 500 talents that will help diversify Embracer. Wingefors continued by saying that their balance is strong and they have more acquisitions planned.
The Companies in Question
As Wingefors stated, Embracer’s goal is diversification. Showcasing this is the companies they have acquired.
Besides CrazyLabs, one of the most notable acquisitions is that of 3D Realms. The venerable studio was founded in 1987 and gained notoriety worldwide for its Duke Nukem franchise. According to Embracer, 3D Realms have several new projects planned with Slipgate Ironworks.
Slipgate is best known for their titles like Graven and for porting projects for other studios. They will become a subsidiary of Saber Interactive, which Embracer acquired in 2020.
Ghost Ship Games is a Danish development studio. The deal was led by Coffee Stain, a developer that already had a working relationship with Ghost Ship. The two studios previously worked on developing the action game Deep Rock Galactic.
Easy Trigger also has a connection with Coffee Stain, as they worked on the game Huntdown. They will continue working together on that IP, as well as creating new original titles.
Force Field is a VR game developer known for titles like Landfall and Time Stall. They will become a subsidiary of Vertigo Games and continue producing VR titles.
DigixArt is a French studio best known for narrative, original IP. Their titles include Lost in Harmony and 11-11 Memories Untold. The studio will continue operating independently under Koch Media.
Last but not least is Grimfrost who stand out from the others. While the other companies in question are game studios, Grimfrost is a clothing and costume brand. They also have a wealth of experience in e-commerce.
Embracer Looks to Expand Further
Along with these eight companies, Embracer Group has a history of acquisitions. Throughout the years they have established eight operative groups as direct subsidiaries.
Those are Amplifier Game Invest, Coffee Stain Holdings, DECA Games, Easybrain, Gearbox Entertainment, Koch Media, Saber Interactive, and THQ Nordic. Each of those have their own subsidiaries and studios. The total number of studios is now 75, including the 8 new acquisitions.
2021 has seen two acquisitions already, with Embracer buying Easybrain for $640 million and Aspyr Media for $450 million.
But the spending will not stop there.
According to Embracer’s quarterly report, in 2021 they wish to spend $2 billion on M&A. This means there are more deals to come before the end of the year.