Embracer Group has announced that they have entered into a merger with The Gearbox Entertainment Company in a transaction worth up to US$1.3 billion and set to close within three months, Aspyr Media through its wholly-owned subsidiary Saber Interactive, and Easybrain in a transaction set to close in approximately two months.
Gearbox is best known for the Borderlands franchise (which is getting a movie soon), while Aspyr Media has worked with franchises like Call Of Duty, Sid Meier’s Civilization, SimCity, Borderlands and Star Wars. Meanwhile, EasyBrain is a developer which is focused primarily on mobile games.
Gearbox Entertainment Company founder Randy Pitchford said:
“Lars’ vision of Embracer as an allied partner group committed to fueling and accelerating the ambitions of a series of decentralized, successful entrepreneurial member companies while magnifying the collective value and advantages of diversification across the entire group is the most brilliant strategy and design for short, medium, and long-term success in this industry that I have worked in during 30 years.
The feeling at Gearbox is that we are just getting started and this transaction is not merely a stimulant for the talent of our employee-owned company, but a propellent for the exciting future we have planned.”
The initial purchase price for Gearbox was US$363 million, half in cash and half in Embracer shares. The company will get US$1 billion extra if the company can hit “agreed financial and operational targets in the next six years”.