Online game writer Take-Two Interactive Software program has acquired Gearbox Leisure, the corporate behind the Borderlands franchise, for $460 million in an all-stock take care of Embracer, the newest large deal within the online game enterprise.
The deal comes as Lionsgate is releasing Eli Roth’s theatrical adaptation of Borderlands in August.
Take-Two stated it expects the transaction “to deepen its profitable relationship with Gearbox Leisure and to offer elevated monetary advantages by way of a fully-integrated operational construction.” Gearbox’s in depth IP portfolio consists of full possession of the favored Borderlands and Tiny Tina’s Wonderlands franchises, in addition to Homeworld, Danger of Rain, Brothers in Arms, Duke Nukem. Gearbox at the moment has six interactive leisure tasks in numerous phases of growth, together with 5 sequels, two of that are from the Borderlands and Homeworld franchises, and at the least one new property.
Past these plans, Take-Two stated it believes that there are incremental alternatives to put money into new tasks and to increase Gearbox’s confirmed franchises.
Our acquisition of Gearbox is an thrilling second for Take-Two and can strengthen our industry-leading artistic expertise and portfolio of owned mental property, together with the long-lasting Borderlands franchise,” stated Strauss Zelnick, Chairman and CEO of Take-Two. “This mix enhances the monetary profile of our present tasks with Gearbox and unlocks the chance for us to drive elevated long-term progress by leveraging the complete assets of Take-Two throughout all of Gearbox’s thrilling initiatives.”
“With almost 20 years of historical past working collectively, Gearbox has performed an integral function in our success, given their distinctive capacity to create interactive leisure experiences that characteristic beloved characters, thrilling new worlds, and humorous storytelling,” added David Ismailer, President of 2K. “We’re thrilled to welcome Randy Pitchford and his staff of passionate, proficient builders to 2K and we look ahead to releasing quite a few tasks sooner or later as colleagues. We’ve got cherished partnering with Gearbox on each iteration of the Borderlands franchise and are excited to be in energetic growth on the subsequent installment within the collection.”
“Becoming a member of forces with Take-Two Interactive and 2K will assist Gearbox ascend to our subsequent degree,” stated Randy Pitchford, Gearbox founder and CEO. He’ll proceed to run it, together with present administration, as a studio inside Take-Two. “Take-Two and 2K have demonstrated repeatedly their dedication to our engine of producing creativity, happiness, and revenue. We set the bar for interactive leisure and achieved outstanding outcomes with groundbreaking, record-setting video games after we labored collectively at arm’s size as companions. I’m extremely enthusiastic about what we will accomplish now that we’re absolutely aligned as one.”
Gearbox operates studios in Frisco, Texas, Montreal and Quebec Metropolis.
The house has been an energetic one for offers, from Microsoft’s mammoth $69 billion acquisition of Microsoft final fall, on down.
The variety of Take-Two shares within the transaction will probably be calculated by dividing the acquisition value by Take-Two’s common closing share value over the 5 buying and selling days previous to closing, anticipated within the September quarter.
The transaction excludes sure third-party publishing and different property that Take-Two deemed non-core to its enterprise.
The acquisition value assumes a debt-free, cash-free firm with a normalized degree of web working capital (excluding money) on the time of the closing of the acquisition.
