Embracer Group acquires 3D Realms
Embracer Group AB (“Embracer”), through its wholly owned subsidiary Saber Interactive[1] (“Saber”), has today entered into an agreement to acquire 100 percent of the shares in 3D Realms Entertainment ApS (“3D Realms”). 3D Realms, based in Aalborg, Denmark, is a game publisher with 30+ years of heritage in the industry and the creators of cult game series Duke Nukem. Through the acquisition, Saber onboards an experienced Danish publisher with an owner-led management team that will work closely with the Saber team going forward.
“We have a deep appreciation for 3D Realms’ heritage and look forward to seeing them enter a new era and thrive,” says Andrey Iones, CCO, Co-founder Saber Interactive.
Background and rationale
The history tracks back to 1987 in Texas, USA, where the company was originally founded as Apogee Software, focused on developing PC games. The studio rebranded in 1994 to 3D Realms and has been involved in the development of +40 games including the creation of the legendary Duke Nukem franchise. In 2014, the Danish company SDN Invest acquired 3D Realms and since then 3D Realms has been led by CEO Mike Nielsen and VP Frederik Schreiber, currently engaging a team of 7 employees and a few additional contractors. Since 2014, following a relocation to Aalborg, Denmark and a strategic shift towards publishing, 3D Realms has published six new game titles in collaboration with respected independent developers for both PC and console. The studio has a current pipeline of six new game titles and several exciting projects in collaboration with Slipgate Ironworks.
Through the acquisition, Saber onboards a connected, experienced publisher with a long background in games development. Going forward, 3D Realms will continue to operate as a subsidiary under Saber and work closely with the Saber team on publishing projects.
As part of the acquisition, CEO Mike Nielsen will step down and Frederik Schreiber will assume the role of CEO. Mike Nielsen will remain attached as an advisor.
“We are extremely honored to join the Embracer and Saber family. I know that under their guidance, 3D Realms will continue to grow on the path we have set out. I am very proud to have been a part of 3D Realms and I’m happy to pass on the torch to Frederik Schreiber who has run the company and built it to what it is today”, says Mike Nielsen, Co-founder and ex-CEO 3D Realms.
Purchase Price
The parties have agreed not to disclose the terms. The purchase price contains an upfront part and a 3-year earn-out and consists of a mix of cash and newly issued Embracer B shares. The transaction is in line with previous Embracer transactions.
Completion of the transaction
The transaction was completed as of 15 July 2021.
Advisers
Ernst & Young AB is providing transaction support and Baker McKenzie and Mazanti-Andersen is acting as legal counsel to Embracer in the transaction.
