The Embracer Group has made a whopping 71 acquisitions, mergers, and buyouts from 2016 - 2021...and it has plans for more M&A in the future.
Embracer Group isn't just a name, but an ethos that's represented in the company's massive array of buyouts. It seems like every few months Embracer buys someone new, and major recent acquisitions include Dark Horse Comics, Asmodee, Gearbox Software, 4A Games--the list goes on and on.
In a recent earnings report, Embracer CEO Lars Wingefors says these acquisitions will continue. The company has made 71 acquisitions since 2016 and plans to secure up to 8 billion SEK (roughly $851 million) for more M&A. However, Wingefors says the buyouts will be more selective as the availability of content, gaming's most valuable commodity, starts to shrink due to competing buyouts.
"Several of the businesses acquired over the past year have a low capital intensity. With strong organic growth ahead, we anticipate gradually growing free cash flow. Our diversification is increasing and revenues become more predictable. Our belief is that a strong balance sheet is a tool for long-term value creation, as we always act from a position of strength.
"The M&A market is busy with activities ranging from mega deals to smaller transactions. Our great business partners Microsoft, Sony and Take Two have all been making large moves lately with strategic logic, a testimony that gaming is a very attractive form of entertainment. At Embracer, we note a growing number of inbound calls to us from a variety of actors.
"However, we are more selective than ever. The companies we welcome to our family need to have a long-term mindset, bold ambitions, and feel at home."
With its hands-off approach and co-operative, multi-faceted business model, The Embracer Group has attracted many of the top indie developers and publishers on the market.
Its main operating divisions include Koch Media, the parent of powerhouse publisher Deep Silver, THQ Nordic, who owns a treasure trove of classic IPs, Saber Interactive, who operates multiple high-profile live games, DECA Games and Easybrain, a group of mobile games-makers and now Gearbox, the devs of the mega-hit Borderlands franchise that's sold 74 million copies.
Embracer's operating divisions have a total of 216 games in development, and the company as a whole has access to a massive 271 licensed and owned intellectual properties.
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