Swedish games firm Embracer to buy 3 companies as sales, profits grow

STOCKHOLM (Reuters) - Embracer, Europe's largest gaming firm by market value, said on Wednesday it had agreed to buy three new companies after posting strong sales growth in the first quarter.

The Swedish firm, which has a strategy of boosting growth through deals, said earlier this month it had bought eight companies at a combined value of 2.7 billion Swedish crowns ($308.4 million).

Embracer said on Wednesday it would buy U.S.-based Demiurge Studios, Estonia's OÜ Fractured Byte and Russian-based SmartPhone Labs. It did not disclose deal values but saidconditions were in line with its previous transactions.

Embracer's net sales rose 66% year-on-year to 3.43 billion crowns in the April-June period, its fiscal first quarter, while operating profit (EBITDA) increased 59% to 1.53 billion, it said in its earnings report.

Chief Executive Lars Wingefors said Embracer currently had around 8 billion crowns in net cash and 17 billion in available cash, including credit facilities.

"We continue to have a large number of ongoing discussions to join, including large or transformative acquisitions," he said in a statement.

Many gaming companies have prospered during the pandemic, as people stuck at home have spent increased time in front of smartphone screens.

($1 = 8.7551 Swedish crowns)

(Reporting by Helena Soderpalm; editing by Niklas Pollard)