STOCKHOLM, Dec. 21, 2021 Embracer Group AB ("Embracer"), through its operative group Saber Interactive, has entered into an agreement to acquire 100 percent of the shares in Hungary based DIGIC Holdings Kft ("DIGIC") from its current owners, including founder Alex Rabb. DIGIC is an animation studio founded by Alex Rabb and late Hollywood legend Andrew G. Vajna. Embracer adds a highly skilled team of close to 400 people through the acquisition, with a strong track record within commercial trailers and cinematics for best-selling game titles as well as animations for streaming media. The closing of the purchase is subject to various conditions including, without limitiation, approval of the transaction by lenders of DIGIC and of the Hungarian Ministry of Innovation and Technology.
 Acquired through Embracer's wholly owned subsidiary Embracer Group Lager 2 AB and will be part of the Saber Interactive operative grou
"DIGIC is the best animation studio in the world - period. They have worked on more game animation products than any company in the industry and have also created incredible content for streaming partners such as Netflix. DIGIC will continue to provide creative services to our external partners as well as to internal Embracer studios across the operative groups. I have tremendous respect for Alex and I couldn't be happier to welcome him into the Embracer family. This acquisition is precisely why I love what I do." Said Matthew Karch, CEO of Saber.
Background and rationale
DIGIC, based in Budapest, Hungary, is an animation studio founded in 2002, with a strong track record for creating commercial trailers and cinematics for best-selling game titles. They also have created award-winning content for shows such as Love, Death and Robots on Netflix. The acquisition of DIGIC also includes DIGIC's subsidiaries DIGIC Pictures Kft and DIGIC Services Kft.
DIGIC is led by founder Alex Rabb, long-time industry veteran in both the games and cinematic space. Alex worked closely with late DIGIC co-founder Andrew G. Vajna (Rambo, Terminator, Die Hard) using their experience in Hollywood to bring AAA production values to DIGIC's operations. Alex Rabb will continue to lead the operations with a long-term commitment to the company and considerable incentive to grow. DIGIC engages close to 400 FTE's, located in Budapest (plus an additional 40-50 freelance experts). The company has made its mark worldwide with its multi-award-winning 3D animation for the video game industry, feature films and commercials. DIGIC is best known for crafting all its work to an incredibly high-level of detail, with realistic characters and beautiful environments brought to life using world class lightning and rendering. DIGIC's directors use epic cinematography with film industry storytelling techniques to create visuals.
The acquisition adds a talented team with a strong track record in creating AAA cinematics, trailers and concept art. Within the Embracer Group, DIGIC will operate as a subsidiary under the Saber Interactive operating group. DIGIC will also contribute to internal projects with Gearbox, THQ Nordic, Coffee Stain and Koch Media and further strengthen Saber Interactive's work-for-hire business.
Purchase Price and financial contribution
Due to commercial reasons the specific transaction terms are not disclosed but include shares and long-term earnouts. The transaction will be accreative to adjusted earnings per share.
In the calendar year 2021, DIGIC will generate approximately net sales of SEK 240 million and operational EBIT of SEK 50 million. Forecasted operational EBIT is SEK 60-70 million in 22/23 and SEK 70-90 million in 23/24. These figures do not include any commercial synergies.
Founder and CEO, Alex Rabb, is committed to stay within the company. Post transaction business will remain as usual and there is no planned restructuring.
Completion of the transaction
The transaction is subject to various conditions including without limitiation, approval of the transaction by lenders of DIGIC and of the Hungarian Ministry of Innovation and Technology and is estimated to be completed during the fourth quarter of Embracer's fiscal year.
For additional information, please contact:
Lars Wingefors, Co-founder and Group CEO Embracer Group AB
Tel: +46 708 47 19 78
Alex Rabb, CEO and Co-founder of DIGIC
Matthew Karch, CEO and Co-founder, Saber Interactive
About Embracer Group
Embracer Group is the parent company of businesses developing and publishing PC, console and mobile games for the global games market. The Group has an extensive catalogue of over 250 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency, World War Z and Borderlands, amongst many others.
With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its eight operative groups: THQ Nordic GmbH, Koch Media GmbH/Deep Silver, Coffee Stain AB, Amplifier Game Invest, Saber Interactive, DECA Games, Gearbox Entertainment and Easybrain. The Group has 86 internal game development studios and is engaging more than 9,000 employees and contracted employees in more than 40 countries.
Embracer Group's shares are publicly listed on Nasdaq First North Growth Market Stockholm under the ticker EMBRAC B with FNCA Sweden AB as its Certified Adviser; firstname.lastname@example.org +46-8-528 00 399.
Subscribe to press releases and financial information:
The release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions. The recipients of this press release in jurisdictions where this press release has been published or distributed shall inform themselves of and follow such restrictions. The recipient of this press release is responsible for using this press release, and the information contained herein, in accordance with applicable rules in each jurisdiction. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in Embracer in any jurisdiction, neither from Embracer nor from someone else.
This announcement does not identify or suggest, or purport to identify or suggest, the risks (direct or indirect) that may be associated with an investment in Embracer's shares. Any investment decision regarding Embracer's shares must be made on the basis of all publicly available information relating to the company and the company's shares. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. This announcement does not constitute a recommendation. Each investor or prospective investor should conduct his, her or its own investigation, analysis and evaluation of the business and data described in this announcement and publicly available information. The price and value of securities can go down as well as up. Past performance is not a guide to future performance.
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. Embracer 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 Embracer 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, unless it is not required by law or Nasdaq First North Growth Market's rule book for issuers.
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
PR_Acquisition of DIGIC