The total purchase consideration can reach $14.75m paid with a mix of cash and Embracer B-shares, including:
$8.45m upfront on a cash and debt-free basis
$6.3m earn-out consideration, paid over a five-year term if the agreed financial benchmarks are met
THQ Nordic also formed a new structure in Bosnia and Herzegovina. Gate21 will work on the development of “world-class 3D characters”
? Strategic Rationale
With these acquisitions, Embracer continues to implement its inorganic growth strategy. Since the beginning of 2020, Embracer has acquired 33 companies, including the announced 4 studios
Embracer has grown from one to eight operating units in the last three years. To ensure the sustainability and scalability of Embracer’s decentralized operating model, the majority of acquisitions must be originated and executed at the operating unit level
Though the acquired studios are smaller than most of the previously acquired ones, they may become a great supporting addition to the bigger players in Embracer’s ecosystem, including porting expertise of KAIKO and Massive Miniteam studios
Overall, Embracer brings over 90 employees onboard, further increasing its presence in Europe
? Appeal Studios
THQ Nordic has purchased Charleroi, Belgium-based PC & console game developerAppeal Studios
Appeal Studios was originally founded in 1995 by Yves Grolet, Franck Sauer, and Yann Robert, and has previously been known for Outcast (1999) and several other action-adventure titles for PS and PCS. However, the company was closed due to bankruptcy reasons and subsequently relaunched in 2015
The team of 55 employees is currently working on an unannounced open-world sci-fi action-adventure
? KAIKO
THQ Nordic GmbH has acquired Frankfurt, Germany-based cross-platform game studioKAIKO
Established in 2014 by Chris Hülsbeck, Frank Matzke, and Peter Thierolf, the company currently employs 10 people
The studio is known for its game development and porting capabilities. Kaiko ported or remastered such games as Kingdoms of Amalur, Red Faction Guerrilla, and Darksiders, to new generations of consoles
? Massive Miniteam
Pulheim, Germany-based indie games developerMassive Miniteam was acquired by THQ Nordic’s subsidiary HandyGames
Founded by Tim Schroeder, the company has participated in porting various titles to consoles. It has also helped to bring several games to virtual reality
Massive Miniteam will be completely incorporated into the HandyGames organization, functioning under the THQ Nordic operative group
The studio has been established in 2018 and has 20 people employed
? FRAME BREAK
Indie studioFRAME BREAK with its headquarters in Skövde, Sweden was acquired by Embracer’s subsidiary Amplifier Game Invest AB
FRAME BREAK creates original IP games for PC and console platforms
The studio was founded in 2020 by a group of developers with Joakim Hedström as CEO and currently employs 5 people
The company will become a wholly-owned subsidiary of Amplifier Game Invest, among other 13 game development companies
? Previous Acquisitions
In February 2021, Emracer purchasedGearbox Entertainment,Easybrain, andAspyr Media for a total consideration of ~$2.6B. The acquisitions have expanded the company into the 7th and 8th operating groups and scaled its growth, publishing, and porting capabilities across multiple platforms
In November 2020, Embracer announced 13 acquisitions including 2 mobile-focused studios, 9 PC/Console studios, 1 QA provider, and 1 PR agency for the total purchase price of up to $441.5m
In September 2020, Embracer Group acquiredVertigo Games for up to $136m, including $59m of an upfront consideration and $77m of a maximum earn-out consideration
In August 2020, Embracer Group announced 8 acquisitions: Sola Media, Pow Wow Entertainment, Palindrome Interactive, Rare Earth games, Vermila Studios, Deca Games, New World Interactive, and 4A Games
In February 2020, Embracer Group acquired PC and console game developerSaber interactive for $150m of upfront consideration with an additional earn-out of $375m
Among the previous acquisitions of the company are Tarsier Studios, Milestone s.r.l., Goodbye Kansas Game Invest, Gunfire Games, Piranha Bytes, Warhorse Studios, 18POINT2, Coffee Stain, Bugbear Entertainment, and Koch Media
