Embracer Group has acquired Borderlands publisher Gearbox Software for $363 million with a much greater potential payout on the horizon if the company can meet its financial targets.
The last couple of years have been pretty good for Embracer Group. Aside from raising more than half a billion through the issuance of new shares, it has spent a fair amount of its time and energy acquiring studios left and right. Notable recent additions include Metro Exodus developer 4A Games and the Shadow Warrior reboot developer Flying Wild Hog. Now, the developer of the wildly popular Borderlands franchise will become a part of Embracer Group.
Why Did Embracer Group Acquire Gearbox Software?
Embracer Group acquired Gearbox Software for one simple reason: the numbers add up. Gearbox has had its stumbles just like any other company, but the last few years have shown some very promising developments.
"We believe that the resources offered by Embracer will position Gearbox for significant growth in the years to come." – Embracer Group Founder and CEO Lars Wingefors
Gearbox Software is best known as the developer of the Borderlands franchise. The most recent entry was Borderlands 3, an FPSRPG that's doing well enough that it warranted the development of a second Season Pass. A Director's Cut of the game is expected sometime in the Spring of 2021.
Video games aren't Gearbox's only area of interest, either — the company is expanding into television and film as highlighted in a press release. These upcoming projects include a television series based on Brothers in Arms and films based on Duke Nukem and Borderlands.
The Gearbox deal has the potential to pay out an additional $1 billion split between cash and shares over the next six years — but only if certain conditions are met. Simply put, Gearbox needs to hit certain financial targets and keep critical employees on staff for the duration of this period to qualify for the bonus payouts.
Going forward, Gearbox will continue to operate as an independent studio. Not much should change for the day-to-day operations save for one exception: Gearbox Software now has some serious financial backing behind it.
Update February 3 1:15PM: As MP1st reports, Embracer Group has added that 2K will continue to work with Gearbox Software on the Borderlands franchise.
What do you think of Embracer Group acquiring Gearbox Software? Do you think we'll see a greater expansion in the Borderlands franchise as a result of this deal? Let us know in the comments below!
