Embracer Group AB and its subsidiaries have entered into agreements to acquire or merge with The Gearbox Entertainment Company, Easybrain Limited and Aspyr Media Inc. The aggregated day one purchase price for the transactions amounts to approximately SEK 9.3 billion in total, on a cash and debt free basis, and is paid in cash and newly issued Embracer B shares. Baker McKenzie acts as legal advisor to Embracer in all three acquisitions.
Embracer Group is the parent company of businesses developing and publishing PC, console and mobile games for the global games market. After completion of the just announced transactions, Gearbox and Easybrain will create the seventh and eighth operating group within Embracer and Aspyr will become the largest independent company to join the operating group Saber Interactive.
The Gearbox Entertainment Company was founded in 1999 and has 550 employees across two development studios, in Texas, USA and Quebec City, Canada. The merger with Gearbox will enable collaboration within Embracer in terms of development, publishing, technology, IPs as well as a platform for further M&A in North America. The company is acquired for a day one purchase price of USD 363 million on a cash and debt-free basis plus an additional consideration of up to USD 1,015 million.
Easybrain Limited is a leading mobile game developer with 230 employees in Cyprus and Belarus, with a core focus on advertising-based puzzle and logic games. The company is acquired for an initial purchase price of USD 640 million on a cash and debt-free basis plus an additional consideration of up to USD 125 million.
Aspyr Media Inc. is an independent developer and publisher with more than 24 years’ experience in finding beloved IPs and connecting them with new audiences on all platforms. The company has a team of 140 developers in Texas and is acquired for an initial purchase price of USD 100 million on a cash and debt-free basis plus an additional consideration of up to USD 350 million.
Baker McKenzie's teams working on these transactions consist of a large group of colleagues and specialists from various offices across the firm led by Anna Orlander with support of Joakim Falkner and Ian Gulam from the Stockholm office and David Malliband, Airi Hammalov and Brook Mestre from the US offices.
Baker McKenzie's global video games industry team advises on a wide range of national and cross-border transactions in the video games industry.