Embracer Group Mergers and Acquisitions Presentation Deck slide image

Embracer Group Mergers and Acquisitions Presentation Deck

Acquisition Rationale Strategic move into transmedia that adds expertise within publishing comics, production of film and TV series. ● ● ● Deal Structure and Acquistion Rationale ● Big IP library and well-oiled pipeline: Dark Horse owns or controls a vast number of properties through their comic book publishing. This type of transmedia company fits perfectly within Embracer Group. 30 years in business: Diverse business with strong presence in comic books/graphic novels and film/tv-series. Years of IP investment position Dark Horse to further monetize its library across platforms in the near-to-long-term Games based on Dark Horse IP: Lot of untapped potential in bringing Dark Horse's properties to games. Represents a potential upside and synergies within Embracer Group. The companies are already working together. Dark Horse is a platform for the best content creators in the world. Perfect opportunity to match content creators with game developers Opportunity for transmedia collaboration - e.g. comics that supplement or pre-date release of major games or art books to be bundled with Embracer games as deluxe editions Greater access to film/TV for Embracer content - Dark Horse has relationships with studios, talent and writers that can bring Embracer IP over to screen media Transaction terms and financial contribution ● EMBRACER+ GROUP ● Net Sales 2021- SEK 900 million with SEK 130 million of operational Ebit. Forecasted to generate operational EBIT of SEK 140-180 in FY22/23 and SEK 170- 200 million in FY 23/24. This figures excludes any commercial synergies or planned M&A. 80% of the shares of Dark Horse are acquired from a seller based in Hong Kong. Remaining 20% of shares will be acquired from founder and CEO, Mike Richardson and COO Neil Hankerson. Both are committed to stay with the company. Post transaction business will remain as usual and there is no planned restructuring. Purchase Price Due to commercial reasons the specific transaction terms are not disclosed. The transaction will be accretive to adjusted earnings per share. Completion of Transaction The transaction is subject to certain customary conditions, including merger control approval, and is estimated to be completed by the end of January 2022. Dark Horse will become the 10th operative group as a subsidiary of Embracer Group 16
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