Karlstad, December 20 2019, 07:30 CET
Embracer Group acquires critically acclaimed Tarsier Studios
Embracer Group today acquired Tarsier Studios. The purchase price is SEK 88 million in cash and SEK 11
million in newly issued Embracer B-shares, plus a conditional earn-out, payable over 10-years to certain
sellers who will remain with Tarsier. The acquisition includes the development studio, all employees and
Intellectual Property rights.
Tarsier was founded 2005 in Karlshamn, has 15 years of experience from games development and is one of the
largest independent studios in Sweden. Today the studio is based in Malmö, has 65 employees and is led by an
experienced team with award-winning creative and artistic world class skills.
Tarsier focuses on developing AA(A)/III (Tripple-i) adventure games and platform puzzles to primarily PC and
consol. Over the years, the company has worked primarily as a work-for-hire studio together with global
publishing powerhouses such as Nintendo, Sony Interactive and Bandai Namco. The studio has also been
successful in developing new original IPs such as Little Nightmares, Statik and Stretchers from concept,
through the development phase and to commercial release. The Little Nightmares IP is owned by Bandai
Namco, the Statik IP is owned by Tarsier and the Stretchers IP is owned by Nintendo.
Tarsier is most famous for the critically acclaimed million-selling franchise Little Nightmares (2017), where
Tarsier developed the IP from scratch and released it together with Bandai Namco on PlayStation, XBOX ONE,
PC and Nintendo Switch. At Gamescom in August 2019, they announced the sequel Little Nightmares 2,
planned to be released during 2020 together with Bandai Namco.
Embracer has a firm confidence in the competence and knowledge that has been accumulated in Tarsier
during its 15 years in the games business and is looking forward to supporting the Studio with long-term
investments into new IP development. The Studio will remain autonomous within Embracer’s wholly owned
sub-group Goodbye Kansas Game Invest. Embracer and Goodbye Kansas Game Invest will act as owner,
financier and publisher of the new IPs to be developed. Tarsier and Embracer is committed to completing
ongoing development projects financed by external parties such as Little Nightmares 2, published by Bandai
Namco.
"We at Embracer are impressed with the position and the team that Tarsier has built up during 15 years, which
is evident looking at the fantastic reviews that several of the studio’s famous productions have received, and
with the future ambitions of the Studio. Together with Tarsier, we want to invest in developing new projects, in
the same manner they have done successfully in the past. We look forward to, together with management and
all of Tarsier’s employees, embrace the quality and creativity the Studio has, and take the Studio to the next
level", says Lars Wingefors, co-founder and group CEO, Embracer Group AB.
"It feels exciting to, after a 15-year long journey with Tarsier, partner up with Embracer to continue develop the
potential that our Studio has. We look forward to the opportunity to continue making exceptionally great
games together with Embracer Group", says Andreas Johnsson, Studio Head, Tarsier Studios.
Background and rationale
Embracer Group has a clear growth strategy and a long and successful history of acquiring games and
development studios. Through the acquisition of Tarsier Studios, Embracer builds on its strong presence in the
Swedish market and establishes a platform in Malmö, a hub that promotes game development with various
initiatives annually and with over 50 active gaming studios. Embracer will support Tarsier's future growth and
is convinced that the studio has an excellent ability to build on the portfolio and knowledge it has created
during its 15 years in the industry, and can benefit from Embracer's network and expertise in development and
placement.
Financing of the transaction
The purchase price will be financed by Embracer’s existing cash and by issuing new B-shares in Embracer
Group AB, in accordance with authorization from the AGM. The newly issued class B shares are issued to five
of the sellers of Tarsier Studios. The price per share is based on the volume-weighted average price of
Embracer Group's shares on Nasdaq First North Growth Market during the twenty (20) trade days preceding
20 December 2019 (i.e. 19 December 2019), i.e. SEK 67.91. Following the issue of shares, the number of shares
increase in total by 162,163 to 312,067,198 and the number of votes increase with 162,163 to 554,905,035
(divided between 27,000,000 A shares and 285,067,198 B shares). The share capital increases with in total
approximately SEK 450 from approximately SEK 866,403 to approximately SEK 866,853. The newly issued
shares will represent 0.05 percent and 0.03 percent of the total number of shares and votes in the Company,
respectively, on a fully diluted basis.
In addition to the purchase price, certain sellers are entitled to a 10 year earn-out payment, subject to
fulfilment of specific financial metrics, with a cap of SEK 44 million. The transaction is not subject to any
further resolution or approval and the record date is December 20, 2019.
Advisers
Baker McKenzie acts as Embracer Group’s legal adviser in the transaction.
For more information, please contact:
Lars Wingefors, co-founder and Group CEO
Tel: +46 708 47 19 78
E-mail: lars.wingefors@embracer.com
About Embracer Group
Embracer Group is the parent company of businesses developing and publishing PC and console games for the
global games market.
The Group has an extensive catalogue of over 130 owned franchises, such as Saints Row, Goat Simulator, Dead
Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory and Wreckfest amongst
many others. With its head office based in Karlstad, Sweden, Embracer Group has a global presence through
its three operative groups: Koch Media GmbH, THQ Nordic GmbH, and Coffee Stain AB. The group has
eighteen internal game development studios and are engaging more than 2,900 employees and contracted
employers in more than 40 countries.
Embracer Group's shares are publicly listed on Nasdaq First North Stockholm under the ticker EMBRAC B with
FNCA Sweden AB as its Certified Adviser; info@fnca.se +46-8-528 00 399.
For more information, please visit: http://www.embracer.com
Forward-looking statements
This press release contains forward-looking statements that reflect the Company's intentions, beliefs, or
current expectations about and targets for the Company's future results of operations, financial condition,
liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which
the Company operates. Forward-looking statements are statements that are not historical facts and may be
identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will",
"should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-
looking statements in this press release are based upon various assumptions, many of which are based, in
turn, upon further assumptions. Although the Company believes that the expectations reflected in these
forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be
correct. Because these statements are based on assumptions or estimates and are subject to risks and
uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking
statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors
could cause actual events to differ materially from the expectations expressed or implied in this release by
such forward-looking statements. The Company does not guarantee that the assumptions underlying the
forward-looking statements in this press release are free from errors and readers of this press release should
not place undue reliance on the forward-looking statements in this press release. The information, opinions
and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and
are subject to change without notice. Neither the Company nor anyone else undertake to review, update,
confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or
circumstances that arise in relation to the content of this press release.
