Venturebeat reports that Embracer Group has acquired Borderlands maker Gearbox Entertainment.
More information.Embracer Group is the parent company of game businesses with a catalog of over 200 owned 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.
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 internal game development studios in 40 countries.
Embracer said that Gearbox generated $123 million in sales for the nine months ended September 30. For the full calendar year of 2019, Gearbox generated sales of $125.2 million and operational earnings before interest and taxes of $37.7 million.
Under the deal, Embracer will pay $188 million in cash and $175 million in newly issued Embracer B shares. If Gearbox hits targets for operations in the next six years, it will also get a maximum of $1.01 billion. Of that amount, $360 million will be issued in Embracer B shares and the remaining $655 million will be in cash.
Gearbox's portfolio includes Borderlands, Brothers in Arms, Homeworld, and Duke Nukem. The Borderlands franchise currently has three blockbuster installments, and the franchise has sold more than 60 million copies to date. The Brother in Arms series has sold more than 10 million copies to date. Gearbox Software, the game development unit, has developed more than 20 game titles over almost two decades with hundreds of millions units sold combined.