Embracer Group acquires Gearbox Software turning Gearbox into a seventh operating group of Embracer.
This seventh operating group of Embracer will work as its wholly-owned subsidiary.
The official numbers of the deal are now public and Gearbox Entertainment CEO Randy Pitchford shared the details. The acquisition/merger values for a whopping $1.3 billion in both stocks and cash. The deal is mentioned as a merger because it contains mostly stock transactions.
The upfront amount Gearbox and Embracer gets in the deal is $188 million in cash and $175 million in stocks.
The rest of the amount will come in a period of six years conditional to operational and financial targets. The deal will benefit gamers as Gearbox will accelerate its work on games and won’t have to worry about publishing costs and investments. The deal will work as a propellant for Gearbox but for Embracer Group, it will surely open a door for more collaborations and acquisitions in North America.
Lars Wingefors, Founder and CEO of Embracer shared his thoughts on the merger and said, “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.”
Post-merger, Gearbox’s 550 employees across the US will join Embracer’s global team of 5500 throughout the world. Randy Pitchford, founder and CEO of Gearbox will continue in his current role. Pitchford commented on the merger, “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.”