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Borderlands is a first-person shooter game set in a space western.
Swedish video game group Embracer announced Thursday that it will sell Gearbox Entertainment, the developer of the popular first-person shooter game series “Borderlands,” to U.S. company Take-Two for $460 million.
Embracer CEO Lars Wingefors said the sale, which is expected to be completed by the end of June, is “an important move to significantly reduce net debt, improve free cash flow and position Embracer for the future.” “It's a great step,” he said.
The group said in a statement that the sale will reduce the company's net debt by approximately $300 million to $327 million.
Gearbox joins Take-Two's lineup, which also includes “Grand Theft Auto” maker Rockstar Games and “NBA 2K” studio 2K.
Embracer, which also owns the license to Tomb Raider, acquired Gearbox in February 2021 in a deal worth up to $1.4 billion as part of a multi-year acquisition spree.
The Swedish company currently owns Gearbox Software, Gearbox Montreal, Gearbox Studio Quebec, and the westerns Borderlands, Tiny Tina's Wonderland, Homeworld, Risk of Rain, Brothers in Arms, and “Duke Nukem.”
Embracer will hold publishing rights to the “Remnant” franchise, “Hyper Light Breaker” and other unreleased game releases with select companies, including Gearbox Publishing San Francisco.
All assets held will be integrated into other divisions of Embracer Group, the company said.
In June 2023, the Swedish company announced a major restructuring program that included the closure of studios and the cancellation of game projects.
At the time of the announcement, Wingefors said the turnaround plan was aimed at transforming the company “from its current high investment mode into a highly cash flow generating business.”
Embracer announced earlier this month that it would sell its U.S.-based subsidiary Saber Interactive, which manages multiple game development studios in Russia and Eastern Europe, and cease all operations in Russia.
