Recent reports had indicated that Saber Interactive was on the verge agreeing a deal with parent company Embracer Group that would see it going independent. That has now been officially confirmed.
Embracer Group has announced that it has agreed to sell Saber Interactive to Beacon Interactive, a company created by Saber co-founder Matthew Karch for the purposes of the transaction. Embracer and Karch have been negotiating the deal since November last year, at which time Karch agreed to step away from Embracer Group and Saber Interactive management so as to avoid a conflict of interest.
The deal will be worth $247 million (SEK 2,527 million), of which $44 million (SEK 450 million) has been allocated as absorbed earn-out debt obligations. In total, Embracer says the deal will see it divesting 38 ongoing game development projects worth SEK 2.3 billion (roughly $224.3 million). This will also include “certain proprietary engine technology and game tools relating to the divested companies.”
“I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us,” said Embracer Group CEO and co-founder Lars Wingefors. “This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership. At the same time, we keep key companies, valuable IPs and future publishing rights. Cash flow is immediately improved, and we remain committed to reducing net debt. The transaction yields additional headroom to amortize debt in accordance with existing bank agreements and will improve financial flexibility. This is the first transaction of the previously mentioned structured processes and marks a small but important step in our journey to transform Embracer into the future for the benefit of all employees, gamers, and shareholders.”
“Over the past four years, I have been proud to be part of Embracer’s amazing transformation into one of the leading game companies in the world,” said Saber Interactive co-founder and Beacon Interactive director Matthew Karch. “As part of the company’s efforts to reorganize for a changed industry and geopolitical challenges, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways. This divestment leaves both parties in much better positions to grow our respective businesses. I will continue to remain a large, long-term shareholder of Embracer and we will remain partners on several ongoing and future projects. This transaction also safeguards the livelihoods of hundreds of professionals, many of whom I have worked with for over two decades.”
As part of the transaction, Saber Interactive will also be retaining ownership of studios such as 3D Realms, Slipgate Ironworks, and New World Interactive, though the likes of Aspyr Media, Tripwire Interactive, and Tuxedo Labs will remain with Embracer Group. Head on over here for more details on how Saber and Embracer are divvying up their studios and projects.
Interestingly, it’s also been confirmed that though Saber Interactive can exercise the option to acquire Metro developer 4A Games, long-term publishing rights for all current and future Metro titles will be retained by Embracer-owned PLAION.
