Sweden’s Embracer acquires 3 companies midst surging profits

On Wednesday, Europe’s largest gaming firm by market value said, it had agreed to acquire 3 companies after posting record revenues in the first quarter.

Earlier this month, Sweden’s Embracer, which has a strategy of boosting growth through deals, said it had purchased 8 companies at a combined cost of $308.4 million (2.7 billion Swedish crowns).

On Wednesday Embracer said, it would acquire U.S.-based Demiurge Studios, Estonia’s OÜ Fractured Byte and Russian-based SmartPhone Labs; it however did not disclose the individual value of the deal but only said, the purchase agreements were in line with its previous deals.

In the April to June quarter, Embracer’s net sales rose by 66% year-on-year to 3.43 billion crowns while its earning post EBITDA, rose by 59% to 1.53 billion.

Embracer’s’s CEO Lars Wingefors said, the company has currently around 8 billion crowns in net cash and 17 billion in available cash, including credit facilities.

“We continue to have a large number of ongoing discussions to join, including large or transformative acquisitions,” said Wingefors in a statement.

Gaming companies have seen steady growth during the coronavirus-induced COVID-19 pandemic with consumers spending more time in front of smartphone screens.

($1 = 8.7551 Swedish crowns)



Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Strategy

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