Embracer Group divests Arc Games and Cryptic Studios

Embracer Group has entered into an agreement to divest Arc Games and Cryptic Studios to Project Golden Arc, a company owned and led by members of the Arc Games management team, for $30 million, the company announced. The deal is financed by Hong Kong-based publisher and developer XD.

As part of the deal, Embracer Group will retain the publishing rights to the Remnant franchise, which were published by Arc Games. Rights will be transferred to Embracer Group subsidiary THQ Nordic, which already owns the Remnant intellectual property rights and development studio Gunfire Games. Arc Games will remain listed as a co-publisher for Remnant: From the Ashes and Remnant II.

The rights to the multiplayer online game Fellowship will also be retained under the Coffee Stain banner. Arc Games will remain listed as a co-publisher.

“This transaction supports our key priorities by strengthening our focus on strategic assets and core IPs in Embracer while improving profitability and free cash flow,” said Embracer Group CEO Phil Rogers in a press release. “The deal also allows online multiplayer game Fellowship, developed by a talented external team in Stockholm, to find a great home within Coffee Stain Group. I would like to thank the teams at Arc and Cryptic for their hard work over the past four years and wish them all the best as we are confident they will thrive and develop in the years ahead.”

Closing of the transaction is expected to take place as soon as customary conditions are fulfilled.