After achieving excellent revenue growth in the first quarter, Embracer (EMBRACb.ST), Europe’s largest gaming firm by market value, announced on Wednesday that it had agreed to buy three new companies.
The Swedish company, which has a deal-making strategy, announced earlier this month that it had purchased eight companies for a total of 2.7 billion Swedish crowns ($308.4 million). Embracer announced on Wednesday that it would acquire Demiurge Studios in the United States, OÜ Fractured Byte in Estonia, and SmartPhone Labs in Russia. It did not reveal the deal’s value but said the terms were consistent with past deals.
In the April-June period of its fiscal first quarter, Embracer’s net sales jumped 66 percent year on year to 3.43 billion crowns, while operating profit (EBITDA) increased 59 percent to 1.53 billion crowns, according to the company’s financial release. Embracer presently has roughly 8 billion crowns in net cash and 17 billion crowns in available capital, including credit facilities, according to Chief Executive Lars Wingefors. Many game companies have profited as a result of the pandemic since people who have been stranded at home have spent more time in front of their smartphones.
“We continue to have a large number of ongoing discussions to join, including large or transformative acquisitions,” he said in a statement.
Many game companies have profited as a result of the pandemic since people who have been stranded at home have spent more time in front of their smartphones.