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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.

Borderlands’ Developer Gearbox and Embracer Group decides to merge. Two of the top independent entities in the gaming industry decide to merge. 

Gearbox and Embracer Group decide to merge

Gearbox Software and Embracer Group decide to merge

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.”

The merger will make Embracer Group a force to be reckoned with in the gaming industry. It could become an AAA title powerhouse in near future just like Ubisoft, Activision, or EA.

Reinout te Brake

In a career spanning across 20+ years, Reinout te Brake has raised over 100+ Million Euros in Fundraising for a diversity of companies and has worked with several venture capitals firms. Helping gaming companies expand their brand reach, get the right story telling and make an impact on a global scale. Reinout te Brake has had the honor to counsel some of the major gaming companies operating on a global scale. For the last 12 years, he has devoted his major focus towards the niche of gaming consultancy to provide his insight and expertise to help gaming companies reach outstanding financial and business results.