Embracer Group acquires manufacturer of Borderlands Gearbox Entertainment for $ 1.3 billion

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

Gearbox, based in Frisco, Texas, will become a wholly owned subsidiary of the company based in Karlstad, Sweden. The transaction gives Gearbox access to new capital to help it make more games and become a significant part of the Embracer Group, which has 5,500 employees worldwide.

Now she is adding Gearbox’s 550 team in Frisco, Texas and Quebec City, Canada to her team. Gearbox will become the seventh operating group of the Embracer Group. The Embracer Group made headlines in November, when its shopping spree exploded; the company announced that it acquired 12 game studios and a public relations firm in a single day. And while Embracer Group announced the Gearbox deal, it also said it was buying Easybrain, a manufacturer of mobile games in Cyprus, for $ 640 million.

Over the years, Gearbox has worked in the Borderlands and Brothers in Arms franchises and helped develop 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 nurturing and accelerating the ambitions of a series of decentralized and successful entrepreneurial companies, while expanding the collective value and the advantages of diversification across the group it’s the most brilliant strategy and design for short and medium, and long-term success in this industry that I have found in my 30 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 just a stimulus to our company’s talent, but a driver for the exciting future we have planned.”

Above: Randy Pitchford co-founded Gearbox Software in 1999.

Image credit: Gearbox Software

The Gearbox team has developed and engaged an immediate and long-term growth plan that includes expanding talent in both studios, creating new Gearbox studios and expanding partnerships. This merger allows Gearbox to do more with its existing brands, create new brands and potentially undertake the merger and acquisition of another successful industry and entities and properties adjacent to the industry.

“Gearbox is arguably one of the most creative and valuable independent developers in the world,” said Lars Wingefors, founder and CEO of the Embracer Group, in a statement. “We believe that the features offered by Embracer will position Gearbox for significant growth in the years to come.”

Above: Borderlands 3

Image credit: Gearbox Software

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

Embracer Group is the parent company of game companies with a catalog of more than 200 franchises of its own, 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.

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