In its latest move as part of its restructuring plan, Embracer Group has announced that they have officially sold Saber Interactive, home to 3D Realms, Slipgate Ironworks, and more to a group of private investors under Beacon Interactive, a company controlled by Saber Interactive Co-Founder Matthew Karch. Beacon also exercised an option to acquire 4A Games and Zen Studios which makes the total value of the deal to be about $500 million.
Saber will keep Nimble Giant, 3D Realms, Sandbox Strategies, New World Interactive, Slipgate Ironworks, Mad Head Games, and Fractured Byte while Embracer will retain Tripwire, Beamdog, Tuxedo Labs, Demiurge, Shiver, Aspyr, Snapshot Games, and 34BigtThings.
“Due to commercial reasons the parties have agreed not to disclose full terms,” Thursday’s announcement reads. “The Board of Embracer is, however, confident that the exercise price stipulated in the option right reflects at least the studios’ market value and is significantly higher than the current net book value (including goodwill) of USD 81 million (SEK 829 million).”
“I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us,” Embracer CEO Lars Wingefors said in a statement.
“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.”
Karch added: “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. 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.”