Best known for its puzzle-platformer and horror adventure series Little Nightmares, the firm has been purchased at a price of SEK 88 million ($9.3 million), with SEK 11 million ($1.2 million) in Embracer B-shares.
Tarsier Studios was founded in 2005 in Karlshamn, Sweden and today employs 65 people at its office in Malmö.
"We at Embracer are impressed with the position and the team that Tarsier has built up during 15 years, which is evident looking at the fantastic reviews that several of the studio’s famous productions have received, and with the future ambitions of the Studio," said Embracer Group co-founder and CEO Lars Wingefors.
"Together with Tarsier, we want to invest in developing new projects, in the same manner they have done successfully in the past. We look forward to, together with management and all of Tarsier’s employees, embrace the quality and creativity the Studio has, and take the Studio to the next level."
Tarsier Studios studio head Andreas Johnsson added: "It feels exciting to, after a 15-year long journey with Tarsier, partner up with Embracer to continue [to] develop the potential that our Studio has. We look forward to the opportunity to continue making exceptionally great games together with Embracer Group."
Earlier this year, Tarsier Studios unveiled and launched a Little Nightmares spin-off game for mobile called Very Little Nightmares. The game launched on iOS in May 2019 and will make its way to Android in the future.