Video game publisher Take-Two buys Borderlands developer Gearbox for $460 million

Swedish group sells game developer Take-Two with big discountafter purchase includeda deal that valued the company at $1.4 billion in 2021..

In a separate statement Embracer said the deal with Take-Two would reduce its net debt by around SEK 3.2 billion to SEK 3.5 billion. (304.2 million euros) and that he expected the operation to be a success. immediate positive effect on free cash flow generation.

Embracer, owner of the Tomb Raider video game franchise, has led the company since last year. restructuring program aimed at reducing debt. The bank said last month it may miss its net debt target of 8 billion Swedish crowns in March.

Lars Wingefors, CEO of Embracer, stated that the sale of Gearbox to the Take-Two brand ” is the result of the latest structured divestment process and is an important step in Embracer’s transformation into the future.with significantly lower net debt and improved free cash flow.”

Last year, Reuters, citing people familiar with the matter, reported that Embracer was considering acquiring Gearbox as it seeks to shore up its finances.

The Swedish company suffered a setback last May when a $2 billion partnership deal with an unknown company fell through, leading it to announce a major restructuring plan in June.

Gearbox will operate as a 2K studio, a publishing label owned by Take-Two with whom the developer has long collaborated. 2K is actually the publisher of its flagship Borderlands license.

Gearbox founder and CEO Randy Pitchford will remain at the helm of the studio, the American publisher said. The acquisition is expected to be completed in the first quarter of Take-Two’s fiscal year 2025..