Embracer Group acquires Borderlands developer Gearbox in $1.3B deal
Embracer Group is acquiring Gearbox Entertainment as a wholly-owned subsidiary. The deal is worth up to $1.3 billion and provides Gearbox with access to capital for future projects and studio growth.
Embracer Group is headquartered in Sweden. Its subsidiaries include THQ Nordic, Koch Media, and Saber Interactive with over 200 franchises and more than 5,500 employees worldwide. Gearbox Entertainment is headquartered in Frisco, Texas. It has 550 employees, including a studio in Quebec, Canada.
As a developer, Gearbox is best known for the Borderlands franchise. They’ve also worked on Brothers in Arms and Battleborn. In the early 2000s, they were responsible for ports of Half-Life, Tony Hawk’s Pro Skater 3, Halo: Combat Evolved, and James Bond 007: Nightfire.
Since 2016, Gearbox has also gone into publishing. They have published games like We Happy Few and Risk of Rain 2. Most recently, they published the PlayStation 5 launch title Godfall. However, the acquisition seems more focused on its development studios and IPs.
“Gearbox is arguably one of the most creative and valuable independent developers in the world,” says Lars Wingefors, founder and CEO of Embracer Group. “We believe that the resources offered by Embracer will position Gearbox for significant growth in the years to come.”
What’s next for Gearbox?
According to Embracer Group:
The Gearbox team has developed and engaged a plan for immediate and long-term growth that includes the expansion of talent at both studios, the creation of new Gearbox studios, and expanded partnerships. This merger enables Gearbox to do more with its existing brands, create new brands, and, potentially, undertake the merger and acquisition of other successful industry and industry-adjacent entities and properties.
If you’re wondering about the company’s leadership, Randy Pitchford will continue in his current role as head of Gearbox Entertainment.