Embracer Group divests Arc Games and Cryptic Studios, whereas a number of key rights are retained inside the group

Embracer Group AB (“Embracer”) has right this moment entered right into a definitive settlement to divest Arc Games and Cryptic Studios to Project Golden Arc, Inc., with financing from XD Inc. The anticipated web money proceeds quantity to USD 30 million (SEK 287 million). Embracer will retain the publishing rights for the Remnant franchise. The rights for the multiplayer on-line sport Fellowship are additionally retained and will likely be a part of the pending Coffee Stain Group (“Coffee Stain”) spin-off.

“This transaction helps our key priorities by strengthening our give attention to strategic property and core IPs in Embracer whereas bettering profitability and free money circulation. The deal additionally permits on-line multiplayer sport Fellowship, developed by a gifted exterior staff in Stockholm, to search out an awesome house inside Coffee Stain Group. I want to thank the groups at Arc and Cryptic for his or her arduous work over the previous 4 years and want all of them the perfect as we’re assured they are going to thrive and develop within the years forward,” says Phil Rogers, CEO of Embracer.

Divestment of Arc Games and Cryptic Studios key elements:

• The anticipated web money proceeds, after transaction associated prices, quantity to roughly USD 30 million (SEK 287 million).

• The purchaser, Project Golden Arc, Inc., is owned and led by members of the Arc Games administration staff. The deal is financed by XD Inc., a worldwide video video games developer and writer listed on the Main Board of The Stock Exchange of Hong Kong Limited.

• Arc Games is the writer behind dwell service PC/Console video games reminiscent of Star Trek Online and Neverwinter, in addition to Remnant: From The Ashes and Remnant II, Torchlight, Hyper Light Breaker, Chips n’ Clawz vs. the Brainoids and the just lately launched sport Fellowship. Cryptic Studios consists of the event groups for Neverwinter and Star Trek Online.

• During the previous 12 months (1 October 2024 – 30 September 2025), Arc Games and Cryptic Studios, excluding the monetary contribution from the Remnant franchise however together with the capex associated to the multiplayer on-line sport Fellowship, generated web gross sales of SEK 390 million, Adjusted EBIT of SEK -174 million and EBITDAC[1] of SEK -103 million.

Retained rights in Embracer and Coffee Stain key elements:

• The publishing rights for the Remnant franchise will likely be transferred from Arc Games to Embracer’s operative group THQ Nordic, which already owns the Remnant IP rights and the event studio Gunfire Games. Arc Games will stay listed as co-publisher of Remnant: From the Ashes and Remnant II.

• Following a switch from present writer Arc Games, the rights for the multiplayer on-line sport Fellowship will likely be a part of Coffee Stain, which is predicted to be spun off from Embracer and listed on Nasdaq First North Premier Growth Market in Stockholm, with the primary day of buying and selling deliberate for 11 December 2025. Arc Games will proceed to be listed as co-publisher of the sport.

• Fellowship is developed by the Stockholm-based studio Chief Rebel and was launched as Early Access on PC on 16 October 2025. Chief Rebel will proceed because the developer, with a staff of round 35 folks working towards the complete model of the sport. During the previous 12 months (1 October 2024 – 30 September 2025), capex associated to the sport amounted to SEK 49 million. Coffee Stain expects a impartial Cash EBIT[2] influence till the complete sport is launched. The worth of the intangible asset switch quantities to USD 18 million and will likely be transferred to Coffee Stain in a completely non-cash transaction.

Closing of the transaction
Closing of the transaction is predicted to happen as quickly as customary situations are fulfilled.

Advisors
Double Black Capital is performing as monetary M&A adviser and Fenwick & West is performing as authorized counsel to Embracer within the transaction.

[1] EBITDAC = Adjusted EBITDA much less Gross funding in intangible and tangible property.
[2] Cash EBIT = Adjusted EBIT excluding operational depreciation and amortization bills, much less gross investments and funds of lease liabilities