Square Enix sells key studios and franchises including Tomb Raider and Deus Ex to Embracer

Embracer Group has agreed to acquire a number of major studios and franchises including Tomb Raider, Deus Ex, Thief, and Legacy of Cain from Square Enix for $300 million.

The purchase includes development studios such as Crystal Dynamics, Eidos-Montreal, and Square Enix Montreal, bringing approximately 1,100 employees over to Embracer.

The deal will see Embracer hand over the $300 million on a cash and debt free basis, with that total to be paid in full when the deal has closed.

Embracer explained it has secured additional long-term debt funding commitments for this deal and others that are in the pipeline. The transaction is expected to close during the second quarter of the current fiscal year.

Embracer has grown rapidly in recent years, with the Swedish game and media holding company purchasing major developers and publishers including Gearbox, THQ Nordic, Saber Interactive, Coffee Stain Studios, and Koch Media.

Company CEO Lars Wingefors said the deal will allow its newly-acquired studios to "realize their ambitions" and continue their "track record of excellence." It's also hoped the purchase will augment Embraer's development capabilities within the triple-A segment and provide opportunities to accelerate organic growth.

In a separate press release, Square Enix said the move will allow it to launch new businesses by "moving forward with investments in fields including blockchain, AI, and the cloud."

"The Transaction will also provide an opportunity to better align our overseas publishing function with our organization in Tokyo, revisit the current governance structure and associated reporting lines, and advance integrated group management with the goal of maximizing the worldwide revenue generated from future titles launched by the group’s studios in Japan and abroad," continued the press release.

"Going forward, the company's development function will comprise its studios in Japan, Square Enix External Studios, and Square Enix Collective. The company's overseas studios will continue to publish franchises such as Just Cause, Outriders, and Life is Strange."