After months of rumors, the Embracer Group has confirmed an agreement to sell parts of Gearbox Entertainment to Take-Two Interactive for $460 million.
The divested assets include Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec and franchises like Borderlands, Tiny Tina’s Wonderlands, Homeworld, Risk of Rain, Duke Nukem and Brothers in Arms.
Embracer CEO and co-founder Lars Wingefors said, “Today’s announcement marks the result of the final structured divestment process and is an important step in transforming Embracer into the future with notably lower net debt and improved free cash flow.
Through the transaction, we lower business risk and improve profitability as we transition to becoming a leaner and more focused company. “After evaluating several options for Gearbox, I am happy that we have reached a solution that is in the best interest of all stakeholders.
Randy and the team have been great team members throughout the past years, and I would like to thank them all for that. As one of the world’s greatest games developers, I am confident that Gearbox will continue to innovate and thrive in their new home within Take-Two.” Gearbox Entertainment CEO Randy Pitchford added, ”As a significant long-term Embracer Group shareholder, I believe in the strategy for the Embracer Group and am completely convinced that this transaction is the best possible scenario and an obvious net positive arrangement for Embracer Group, for Take-Two and, of course, for Gearbox Entertainment. “My primary interest is always Gearbox, especially our talent and customers.