Embracer Group acquires Flying Wild Hog - Seite 2
Through the acquisition, Embracer adds one of the few remaining independent top-quality developers of scale in Europe with strong capabilities of further growing organically, as well as creating and developing original IP. The acquisition significantly strengthens Embracer's footprint in Eastern Europe and represents Embracer's first owned development team in Poland, a significant and growing hub for game development in Europe.
The team at FWH in Cracow is the only established Game-as-a-Service developer on console/PC platforms in Poland and brings new capabilities to the Embracer group that can be further scaled and leveraged in other projects going forward. FWH are currently working on an exciting project pipeline, including developing four titles for publishers such as Jagex, Devolver Digital and Focus Home Interactive. The 4 new titles will be released starting from FY 21/22. The majority of the revenues of the 4 games in FWH are generated under ongoing work-for-hire contracts with notable potential to earn royalty participations if the titles achieve commercial success.
"Having "The Hogs" join the Koch Media Group is truly great. Together with the local management we plan to develop the three studios further on their journey to making AAA games in the coming years" says Klemens Kundratitz, CEO of the Koch Media Group.
Going forward, Embracer will see development and royalty cost savings from future in-house developed IPs as well as publishing margin savings between Koch Media and FWH. Additional synergies between FWH and Embracer group companies include among other things technology sharing, development resources, utilization of IP catalog and business development. The strategy after the release of the currently developed four games will be a mixture of continued collaboration with external companies as well as own games development based on either new IPs or existing IPs from the Embracer portfolio.
Within the Embracer Group, Flying Wild Hog will operate as an independent studio in the Koch Media Group, which has high confidence in the competence and knowledge that has been accumulated during FWH's +11 years in the games business. Embracer and Koch Media look forward to supporting FWH's studios with long-term investments into new game development projects going forward.