Embracer Group acquires Borderlands maker Gearbox Entertainment for $ 1.3 billion

Borderlands maker Gearbox Entertainment said it was acquired by Embracer Group for up to $ 1.3 billion.

Frisco, Texas-based Gearbox, will become a wholly owned subsidiary of Karlstad, Sweden-based company. The deal gives Gearbox access to new capital to make more games and become a major part of the Embracer Group, which has 5,500 employees around the world.

Now he is adding the 550 group of Gearbox in Frisco, Texas and Quebec City, Canada, to his list. Gearbox becomes Embracer Group’s seventh industry group. Embracer Group made headlines in November when its buying spree exploded; the company announced that it had acquired 12 game studios and a PR firm in one day. And at the same time that Embracer Group announced the Gearbox deal, it also said it was buying Easybrain, a mobile games maker in Cyprus, for $ 640 million.

Over the years, Gearbox worked on the Borderlands and Brothers in Arms franchises and helped with the development of Half-Life, Counter-Strike, Tony Hawk’s Pro Skater, 007 James Bond and Halo.

“Lars’ vision of Embracer as an allied partner group committed to complementing and accelerating the ambitions of a range of decentralized, successful businesses, while increasing the collective value and benefits of diversification throughout the group, is the most brilliant strategy and design for short, medium, and long-term success in this industry that I have encountered in my thirty years in this industry, ”said Randy Pitchford, founder of Gearbox, in a statement. “The feeling at Gearbox is that we are just getting started, and this transaction is not only a stimulant for the talent of our company, but a driving force for the exciting future we have planned.”

The Gearbox team has developed a plan for immediate and long-term growth that includes expanding talent at both studios, creating new Gearbox studios and expanding partnerships. This merger enables Gearbox to do more with its existing brands, create new brands and possibly undertake the merger and acquisition of other successful industries and properties and properties in the industry.

“Gearbox is undoubtedly one of the most creative and valuable independent developers in the world,” said Lars Wingefors, founder and CEO of Embracer Group, in a statement. “We believe the resources Embracer provides will put Gearbox up for significant growth in the coming years.”

Gearbox has confirmed that Pitchford will continue in his current role as head of Gearbox. Juno Capital Partners and Union Square Advisors acted as M&A and financial advisors to Gearbox on this transaction and Fenwick & West acted as legal counsel.

Embracer Group is the parent company of game companies with a catalog of over 200 franchises, such as Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency, and World War Z , among many others.

Embracer Group’s other groups include THQ Nordic GmbH, Koch Media GmbH / Deep Silver, Coffee Stain AB, Amplifier Game Invest, Saber Interactive and Deca Games. Embracer Group has 57 in-house game development studios in 40 countries.