Gearbox is acquired by Embracer Group for up to $1.3 billion miljard
The Swedish Embracer Group has acquired Gearbox Entertainment for an amount that could amount to more than 1.3 billion dollars. Gearbox is known for the Borderlands, Brothers in Arms and the later Homeworld games and will become an independent part of Embracer Group.
Gearbox says the acquisition means it will have easy access to more capital. Gearbox appears to be becoming an independent part of Embracer Group, partly because CEO and founder Randy Pitchford will remain at the head of Gearbox Entertainment. According to Embracer Group, Gearbox will be its seventh operating group, alongside THQ Nordic, Koch Media/Deep Silver, Coffee Stain, Amplifier Game Invest, Saber Interactive and DECA Games. According to Embracer, the transaction will be completed within three months. This is still subject to regulatory approval.
The transaction consists of an initial amount totaling $363 million, of which $188 million in cash and the remainder in shares. Embracer Group also says that Pitchford and its Gearbox employees will jointly become a significant shareholder in Embracer. In addition, so-called earn-outs of 300 and 715 million dollars have been agreed, again partly in cash and shares. Those amounts are transferred if Gearbox meets a number of stated financial performance targets.
In addition to Gearbox, Aspyr Media is also taken over. That is the developer and publisher of, among other things, Star Wars: Knights of the Old Republic II for Android and iOS. Embarcer Group pays $100 million for Aspyr. This is also a combination of cash and shares.
The Swedish Karlstad-based Embracer Group is the parent company of quite a few developers and publishers active in the PC, console and mobile market. Franchises such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, Kingdoms of Amalur and TimeSplitters are part of Embracer Group. The company has 57 in-house development studios and more than 5,500 employees in more than 40 countries.
Borderlands 3