U.S. video game publisher Take-Two Interactive Software said on Wednesday it would acquire Gearbox Entertainment, best known for the first-person shooter game Borderlands, from Sweden's Embracer for $460 million. In a separate statement, Embracer said the deal with Take-Two would cut its net debt by about 3.2 billion crowns ($301.23 million) to 3.5 billion crowns and that it expected the transaction to be immediately accretive to its free cash flow generation. It said last month that it may fall short of its March net debt target of 8 billion crowns.
The Swedish group is selling the game developer for a steep discount, having bought it in a deal that valued the business at up to $1.4 billion in 2021. In a separate statement, Embracer said the deal with Take-Two would cut its net debt by about 3.2 billion crowns ($301.23 million) to 3.5 billion crowns and that it expected the transaction to be immediately accretive to its free cash flow generation.
NEW YORK, March 28, 2024--Take-Two Interactive Software, Inc. (NASDAQ:TTWO), one of the largest interactive entertainment companies in the world, announced that it has entered into a definitive agreement with Embracer Group to acquire The Gearbox Entertainment Company, an award-winning creator of industry-defining entertainment experiences, for $460 million. The consideration consists entirely of newly issued shares of Take-Two common stock. The number of Take-Two shares will be calculated by di