Square Enix to sell Montreal studios to Sweden-based Embracer for $300 million

The deal includes Crystal Dynamics, Edios-Montreal and Square Enix Montreal

Shadow of the Tomb Raider

Square Enix is selling Montreal-based studios Eidos Montreal and Square Enix Montreal and San Francisco-based Crystal Dynamics to Sweden’s Embracer Group for $300 million (roughly $386 million CAD).

The deal is expected to close between July and September and affects 1,100 employees across the three studios. This acquisition means that the Embracer group will own an extensive catalogue of video game series, including Tomb Raider, Deus Ex, Legacy of Kain, Thief and “more than 50 back catalogue games.” While this accounts for much of Square Enix’s Western division, the company still owns Life is StrangeOutriders and Just Cause, as well as Japanese properties like Final Fantasy and Dragon Quest.

“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,” said Lars Wingefors, the co-founder and group CEO of Embracer Group, in a recent press release.

Eidos Montreal most recently released Guardians of the Galaxy and has also worked on recent entries in the Deus Ex series. On the other hand, Square Enix Montreal has developed several critically acclaimed mobile titles, including Hitman Go, Lara Croft Go, and Deus Ex Go. Finally, Crystal Dynamics is best known for the Tomb Raider series.

Embracer owns Gearbox Software, THQ Nordic, Koch Media, Deeper Silver and more. When the company’s acquisition of Square Enix closes, it will have more than 14,000 employees, 10,000 developers and 124 internal studios.

Square Enix says that selling off these studios will allow the company to establish “a more efficient allocation of resources,” adding that it plans to launch “new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.”

Image credit: Square Enix 

Source: Embracer, Square Enix