Who Is Swedish Embracer Group? $1.3 Billion Gearbox Entertainment Acquisition Explained
Swedish Embracer Group has bought Gearbox but who are they?
As you may have already heard by now, the Borderlands creators Gearbox Entertainment have been acquired by the Embracer Group for up to $1.3 billion. The Swedish company also possesses THQ Nordic and Koch Media. This deal by Embracer Group is also its most landmark acquisition to date.
Who is the Embracer Group?
That’s a good question. Even though you may not know a great deal about the company, you more than likely have heard of their video games. Based in Karlstad, Sweden, Embracer ( formally THQ Nordic ) has an impressive collection of over 200 franchises that include Saints Row, Goat Simulator, Dead Island, Darksiders, Metro, MX vs ATV, Kingdoms of Amalur, TimeSplitters, Satisfactory, Wreckfest, Insurgency, and World War Z. The Swedish company also boosts 57 internal game development studios as well as over 5,500 employees, including contracted employees, in over 40 countries which is a really impressive feat.
What does this acquisition mean for Gearbox?
According to Randy Pitchford, who is still remaining head at Gearbox, this $1.3 billion deal means that Gearbox Entertainment will take advantage of Embracer’s success and diversification which basically means the process of allocating capital in a way that reduces the exposure to any one particular asset or risk. Pitchford also states that this merge “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.” Randy also said that he feels that Gearbox “is just getting started” and that this merge will see an exciting future for the company and also its employees.
Lars Wingefors, the founder and CEO of Embracer Group and who first started his company at the tender age of thirteen, believes that Gearbox is “arguably one of the most creative and valuable independent developers in the world” and hopes that this acquisition will mean a joining of forces that will see both companies grow and remain successful for many years to come.
Aside from Borderlands, Gearbox Entertainment is also widely known for hit titles like the Brothers in Arms franchise, We Happy Few, and Godfall when the team moved into publishing. The purchase price had been $363 million initially with an additional $1 billion to be paid when Gearbox Entertainment hit “agreed financial and operational targets in the next six years”.