Embracer Group acquires 4A Games 13 August 2020 DEVELOPED BY
2 Strictly private and confidential 4A Games: AAA developer behind the Metro franchise
THE THE THE BUSINESS DEAL FUTURE
TOP-TIER AAA DEVELOPER ENTERPRISE VALUE longstanding relationship with $36m whereof $20m in shares1 Deep Silver/Koch Media Net cash: c.$9m (at closing) initiating development of a brand new AAA IP
LEADING PROPRIETARY TECH Kyiv, UA Slimea, MLT
best-in-class FPS engine that has LONG TERM COMMITMENT Studio Studio & HQ powered all of 4A’s games 2 developed in-house over 15+ years up to $35m in earnout over five years – SYNERGIES and constantly evolving strong goal alignment and financial incentives internalize long-term value creation of current and future titles 4A remains independent under Saber Interactive with continued royalty and development cost savings focus on AAA projects strengthen Saber Interactive’s Ukraine presence c. €20m c. €12m REV. CY20F EBIT CY20F combine 4A and Saber’s tech IP catalog
Note: Financials based on unaudited preliminary management accounts and estimates prepared in local GAAP. Consideration and earnout shares represent newly issued EMBRAC B shares priced at VWAP 20 subject to claw-back rights. 1) Embracer acquires 100% of 4A Games for approximately $36m paid on a cash and debt free basis whereof c.20m in shares (c.1.2m shares). Net cash position of c.$9m at closing is 3 assumed by Embracer at closing. 2) Earn-out conditional on operational targets as well as CEO and key management retention, whereof 50% paid in cash and 50% paid with up to c.1.2m shares. Veteran team with a diverse and unique set of backgrounds
STUDIO EXPANSION PLAN ADMIN 13% 2006 150+ ANNO FTEs DEVELOPERS +40 87% FTEs OPEN NEW STUDIO GROW CURRENT c. 95% 12 83% 17% STUDIOS RETENTION NATIONALITIES MALE FEMALE TODAY
KIEV: c.80 FTEs MALTA: c.70 FTEs
4 History of 4A Games
AAA INITIATING A TITLE IN BRAND NEW PRODUCTION AAA IP PROJECT
Metascore Userscore Metascore Userscore Metascore Userscore Metascore Userscore Metascore Userscore 81 8.0 82 8.5 84 7.8 71 8.1 82 7.0
2005 2010 2013 2014 2017 2019
Inception: Kyiv Teamed up with Moved HQ and 50+ 150+ FTEs (2005) Deep Silver employees with continued focus By game industry as publisher for from Ukraine to Malta on AAA experiences veterans Metro 2033
5 “ It’s a new age for the Metro series, and Exodus is everything you’ve hoped for
“ it's one of the best shooters in years” 2010 2013 2014 2019 2019 /20
DEVELOPER “ an exquisite post-apocalyptic triumph 4A GAMES PUBLISHER DEEP SILVER LICENSOR DMITRIJ GLUKHOVSKY “ 4A games has nothing left to prove GENRE STORY-DRIVEN FPS (foundation for co-op expansion)
“ this game is damn good
POWERED BY 4A GAMES’ PROPRIETARY ENGINE
6 Leading technology developed in-house since 2005
NATIVELY MULTI-PLATFORM AND SCALABLE INTEGRATIONS INCLUDE
1
BEST-IN-CLASS FPS POWERED ALL OF TECHNOLOGY ROBUST FUNCTIONALITY: 4A’s GAMES LIMITED 3RD PARTY DEPENDENCY
Note: 1) Integration with Saber’s LiveOps soon to come 7 Joining Embracer and slotting within Saber Interactive gives 4A ample opportunity for growth and expansion
Initiating development of Ongoing brand new AAA IP collaboration on new project Leverage decades Continue to explore of experience the Metro series 4A’s AAA acumen side by side with Glukhovsky Combined tech and Deep Silver Saber Interactive’s multiplayer and LiveOps expertise
8 Embracer Group is the parent company of businesses developing and publishing PC and console games for the global games market. The group has an extensive catalog of over 170 owned franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdom Come: Deliverance, TimeSplitters, Satisfactory, Wreckfest, Destroy All Humans!, World War Z and SnowRunner, amongst many others.
With its head office in Karlstad, Sweden, Embracer Group has a global presence through its five operative groups: THQ Nordic, Koch Media/Deep Silver, Coffee Stain, Amplifier Game Invest and Saber Interactive. The group has 33 internal game development studios engaging more than 4,000 employees and contracted employers in more than 40 countries.
Strictly private and confidential