Embracer Group acquires Perfect World Entertainment, Digic
This week's acquisitions amounted to a combined initial purchase of $339 million
Embracer Group has acquired more companies this week, including MMO publisher Perfect World Entertainment.
Specifically, the company has acquired two subsidiaries -- Perfect World North America Corporation and Perfect World Publishing -- from Perfect World Europe for $125 million.
This also includes Cryptic Studios, best known for MMOs such as Neverwinter and Star Trek Online.
While Embracer itself has made the purchase, these companies -- and their 237 employees -- will be integrated into Gearbox Entertainment, which was acquired earlier this year in a $1.3 billion deal.
Embracer noted that Perfect World Entertainment saw operating losses in 2021 due to the cancellation of Cryptic's new MMO Magic: Legends, plus a gap in its publishing schedule. But the group says it is confident that under its leadership, PWE Publishing and Cryptic will be "strong financial contributors" to its operations.
These acquisitions are expected to strengthen Gearbox's publishing operations and add MMOs to Embracer's portfolio.
Embracer Group announced that it is purchasing Hungary-based animation studio Digic Holdings from its current owners, which includes Digic founder Alex Rabb. No purchase price was give at this time.
The acquisition, which will be added to the Saber Interactive operative group, brings almost 400 more people into the group.
Digic has produced animated series for various streaming services, but has also built a reputation for itself by creating trailers and cinematics for best-selling video games, including Assassin's Creed Valhalla, Destiny 2 and The Witcher 3.
These acquisitions were announced alongside the purchases of Dark Horse Media, Shiver Entertainment and Spotfilm Networx.
The company announced that these five acquisitions amounted to a combined day one purchase price of SEK 3.1 billion ($339.7 million), including SEK 2.3 billion ($252 million) in cash.
They are expected to contribute between SEK 246 million and 316 million ($27 million to $34.6 million) to its operational earnings before interest and tax for the next financial year (FY22/23).
This is expected to increase to SEK 519 million and 689 million ($57 million to $75.5 million) in the following financial year.