Sweden’s Embracer splurges up to $2.5bn on three gaming companies
Swedish video game group Embracer has agreed to buy three gaming companies, including US-based Gearbox, the maker of first-person shooter game Borderlands, for up to $2.5bn in cash and stock.
The company, known for games such as Darksiders and World War Z, will pay Gearbox $363m initially with a commitment to pay another $1bn in the next six years if certain operational and financial conditions are met.
It has also bought Cyprus-based Easybrain, a maker of advertising-based puzzle and logic games, for $640m with an additional consideration of $125m based on targets over the next six years.
Embracer’s third purchase, U.S.-based Aspyr Media Inc, was for $100m, along with a target-based payment of another $350m.
Embracer, founded by Lars Wingefors, who is also the main owner, has been a stock market darling, more than doubling in the last one year, boosted by a stream of game studio acquisitions.
In November, it bought a dozen small game studios in one day after splurging $525m in buying U.S. game developer Saber Interactive in February.