Borderlands and Brothers in arms developer Gearbox Entertainment has been acquired by Embracer Group in a deal worth up to $ 1.38 billion.
The agreement will make Gearbox a wholly owned subsidiary of Embracer, which also owns THQ Nordic, Deep Silver, Saber Interactive and more.
The Swedish holding company will initially hand over $ 363 million, consisting of cash and newly issued shares, before paying an additional consideration of up to $ 1.02 billion over the next six years when certain financial and operational targets are met.
Randy Pitchford, Gearbox’s founder and CEO, will continue to lead the US company after the purchase and will also become a “major shareholder” of Embracer.
Pitchford explained that the deal could serve as a “propellant” for Gearbox, while Embracer Chief Exec Lars Wingefors said he plans to position the studio for “continued significant growth in the coming years.”
As part of that growth plan, Embracer plans to partner with Gearbox on all fronts by assisting in the development, publication and handling of major franchises, noting that the deal could also pave the way for further mergers and acquisitions. in North America.
“The merger brought Embracer on board one of the leading independent companies in the games industry, with proven experience in creating long-term franchises and delivering strong original content,” the company said. “Gearbox will become the seventh operating group and will continue to operate as an independent studio focused on premium interactive gaming experiences.”
Borderlands publisher 2K has also weighed in on the news, explaining that the move will not affect its relationship with Gearbox or its role as a publisher on the Borderlands franchise and other projects.
“We look forward to continuing our long-term partnership with this incredibly talented team and bringing many more exciting entertainment experiences to game fans around the world,” said a company spokesperson.