Gearbox has today announced it will be joining Embracer Group as a wholly-owned subsidiary of the Swedish holding company formerly known as THQ Nordic AB. The deal, reportedly worth up to US$1.3B, will see Gearbox and its 550 staff in Frisco, Texas and Quebec City become Embracer Group’s seventh official operating group.

Embracer Group AB (“Embracer”) through its wholly owned subsidiary Saber Interactive (“Saber”), has today entered into an agreement to acquire US-based Aspyr Media Inc (“Aspyr”) by merger from the founders Michael Rogers and Ted Staloch. 

Randy Pitchford will continue as Gearbox boss following the merger, “The feeling at Gearbox is that we are just getting started and this transaction is not merely a stimulant for the talent of our employee-owned company, but a propellant for the exciting future we have planned.”

Embracer’s existing operating groups include THQ Nordic, Saber Interactive, Koch Media, DECA Games, Amplifier Game Invest, and Coffee Stain Holding. Embracer Group has 57 internal game development studios and is engaging more than 5,500 employees and contracted employees in more than 40 countries.

To earn the maximum consideration of SEK 21.8 billion the acquired businesses must generate an accumulated operational EBIT in excess of SEK 23,0 billion over the next 6 to 7 years. The Transactions considerably strengthen Embracer in terms of diversification of revenues, the absolute contribution to profit and free cash flow as well as the organic growth outlook. Through the Transactions, Embracer grows to 64 internal development studios and more than 6,600 employees and contracted employees, of which more than 4,000 are game developers.

By comparison, Xbox Studios is only 2,300 staff. This means that Embracer is positioned as a major player in the gaming sector.