Asmodee's Business Targets and Embracer Group Intends to Contribute €400 Million

The Embracer Group intends to contribute €400 million to Asmodee, based on the sale of Easybrain to the Swiss company Miniclip. In addition, the company provides an outlook on Asmodee's business targets.

As part of Embracer Group's previously announced divestment of Easybrain (read more on GamesMarkt), Embracer Group intends to contribute €400 million to Asmodee in the form of an equity investment upon completion of the divestment. The proceeds of the equity investment will be used primarily to repay gross debt.

During Asmodee's Capital Markets Day, Embracer Group announces Asmodee's financial targets, including Asmodee's intention to refinance its €900 million bank bridge via a debt capital markets transaction. In advance of the planned listing of Asmodee's shares on Nasdaq Stockholm, the Board of Directors has decided to set the following financial targets. The company plans to achieve average mid-single digit annual organic growth over a period of three to five years, which will be further enhanced by M&A. In the medium term, an Adjusted EBITDA margin of more than 18 per cent is targeted. "Target Leverage Ratio on net debt below 3.0x Adjusted EBITDA in the medium term and below 2.0x Adjusted EBITDA in the long term [+5 years]."

"Asmodee is well-positioned for the future and we are now setting financial targets to reflect our confidence in our growth trajectory. Our aim is to achieve mid-single-digit organic revenue growth over the medium term and an Adjusted EBITDA margin in excess of 18 percent in the medium term. With favorable market dynamics and our focus on innovation and operational efficiency, we are confident in our ability to enhance our products and deliver sustainable value to our Stakeholders", says Thomas Kœgler, CEO of Asmodee.

In April 2024, the Embracer Group announced that it would into three distinct games and entertainment companies: Asmodee Group, Coffee Stain & Friends (WT) and Middle-earth Enterprises & Friends (WT). The three entities will become separate, publicly traded companies in order to better focus on their respective core strategies. This transformation affects the GSA companies Deca (Berlin), Plaion (Munich/Höfen), and THQ Nordic (Vienna). Deca and THQ Nordic will be part of Coffee Stain & Friends (WT), Plaion will be part of Middle-earth Enterprises & Friends (WT). Further details here at GamesMarkt.

Never miss anything from the German, Swiss and Austrian games industry again: subscribe for free to our Daily newsletter and get all news straight to your inbox.