Gearbox Software, the esteemed studio behind the Borderlands franchise, has this week become the latest studio to join forces with Embracer Group, the Swedish publisher whose six other subsidiaries include THQ Nordic and Kock Media.
The terms of the agreement are explained in today’s press release: The day one purchase price was $380 million, of which USD 175 million was paid in newly issued Embracer B shares and the residual in cash. An additional $1,015 million will be paid over the next six years, of which a maximum of $360 million in issued Embracer B shares and the residual in cash.
Moving forward, Gearbox Founder and CEO Randy Pitchford will continue to lead Gearbox, and Randy Pitchford and the employees of Gearbox will jointly become a significant shareholder in Embracer.
Lars Wingefors, Founder and Group CEO of Embracer Group said in a statement:
“Gearbox is arguably one of the most creative and valuable independent developers in the world. We believe that the resources offered by Embracer will position Gearbox for continued significant growth in the years to come.”
Randy Pitchford, founder of The Gearbox Entertainment Company also weighed in:
“Lars’s 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 Embracer Group has regularly been adding to its stable of games studios in recent years; most recently, the company acquired VR developer Vertigo Games, and before that, several new studios in a single week, including Rare Earth Games, Palindrome Interactive, Vermila Studios, and more.