Apparently, acquisition deals in the video games industry are soaring to new heights than any time before, and even the pandemic shows no signs of it slowing. Recently Gearbox Entertainment has announced that it will be acquired by the Swedish publishing group Embracer Group for $1.3 billion. Texas-based Gearbox is the developer of Borderlands, and this is the biggest acquisition to date for Embracer Group.
The deal will give Gearbox access to new capital that will be diverted to developing more games and become a wholly-owned subsidiary of the Embracer Group. The deal allows Gearbox Entertainment’s 550 employees to the Swedish group’s 5,500-strong workforce, while Gearbox co-founder Randy Pitchford will remain as the head of the company until the deal is done.
“Lars’s vision of Embracer as an allied partner group committed to fueling and accelerating the ambitions of a series of decentralized, successful entrepreneurial companies while magnifying the collective value and advantages of diversification across the entire group is the most brilliant strategy and design for short, medium, and long-term success in this industry that I have ever encountered in my 30 years in this industry,” said Pitchford, in a statement.
In addition to Borderlands and Brothers in Arms franchises, Gearbox has also developed other popular titles, namely Counter-Strike, Half-Life, Halo, Tony Hawk’s Pro Skater, and 007 James Bond.
Speaking about the acquisition, Gearbox’s founder Randy Pitchford embraced the vision of Embracer Group’s CEO Lars Wingefors’ strategy for the company.
“Gearbox is arguably one of the most creative and valuable independent developers in the world,” said Lars Wingefors, CEO of Embracer Group, in a statement. “We believe that the resources offered by Embracer will position Gearbox for significant growth in the years to come.”
“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 propellant for the exciting future we have planned,” Pitchford commented.
As for Gearbox, the company has already initiated a strategy for its immediate and long-term growth, which includes hiring more staff at both studios, creating new Gearbox studios, and extending partnerships.
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