Saber Interactive has announced they’re officially splitting from Embracer Group in a multi-million dollar deal, bringing with them several subsidiary development studios.
The new deal will see Saber split from Embracer Group for $247 million, roughly half of what the previous rumors claimed on the big split between the two game development companies.
As part of the divestment, Embracer Group will cease all their operations in Russia (not sure why this matters in a financial transaction), instantly improving their cash flow, reducing capex, net debt and future liabilities.
Saber Interactive will keep the following subsidiary developers after the big split: Nimble Giant, DIGIC, Fractured Byte, Sandbox Strategies, Mad Head Games, Slipgate, New World Interactive, and 3D Realms.
Embracer will keep the following subsidiars, pending a few that are an option for Saber to purchase: 34 Big Things, Shiver, 4A Games, Snapshot, Aspyr, Tripwire, Beamdog, Tuxedo Labs, Demiurge, and Zen Studios. These developers will be “integrated into other parts” of Embracer Group in the coming financial period.
Saber Interactive has the option to buy the following studios back from Embracer in the split: 4A Games and Zen Studios, for a fixed price within a certain time period. The price hasn’t been disclosed “due to commercial reasons.” If they choose to buy these developers, long-term licensing and publishing rights to all current and future games in the Metro franchise will continue to be owned by Embracer subsidiary PLAION.
Embracer Group’s remaining studios have a pipeline of titles in development, 14 in total at the time of writing, including: the next AAA game from 4A Games, an unannounced concept phase AAA game, s previously announced AAA game based on a major license, s new AAA multiplayer shooter based on a controlled IP, a new AA game based on an Asmodee IP, a new AA game from 34 Big Things based on an owned IP, Killing Floor 3, Teardown (ongoing development), and the full upcoming pipeline and back catalog from Zen Studios, Aspyr and Tripwire.
“I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us,” said Lars Wingefors, co-founder and Group CEO of Embracer. “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.”
Matthew Karch, co-founder of Saber Interactive and director of Beacon Interactive 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.”
