Early reports have proven true as Embracer Group confirms the sale of Saber Interactive to Beacon Interactive, a new company led by director and Saber co-founder Matthew Karch.
Karch stepped down as Saber CEO in the summer of 2023 (He’s still listed as President on LinkedIn, and remains a large shareholder in Embracer Group). Which makes the sale more intriguing than simply offloading the collection of developers under the Saber banner, especially given the success of SnowRunner, and the recent launch of Expeditions: A MudRunner Game.
The purchase price of $247 million includes additional amounts if the assets are then resold for a higher amount, and options to also aquire 4A Games and Zen Studios. The official press release also mentions 14 games currently in the pipeline which will have publishing rights retained by Embracer, but there’s no mention of any racing or driving titles.
Embracer Group have highlights their improved cash flow and the reduction in debt and liabilities, along with the fact that it means they have ceased all operations in Russia.
“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,” says Matthew Karch, co-founder of Saber Interactive and director of Beacon Interactive.
The studios sold include all Saber branded studios, Nimble Giant, DIGIC, Fractured Byte, Sandbox Strategies, Mad Head Games, Slipgate, New World Interactive and 3D Realms.
Along with SnowRunner and MudRunner, this also includes the Dakar Desert Rally game released in 2022 by Saber Porto.
But some studios have been held back by Embracer as part of the deal, including 34 Big Things (Redout 2), and they’ll still be publishing racing titles from THQ Nordic (MX vs ATV Legends from Rainbow Studios, and Wreckfest from Bugbear Enteratinement), and Plaion (Hot Wheels, Ride, MotoGP).
There’s no information on how Beacon Interactive raised the funding for the transactions, aside from reports mentioning a group of private investors.
“I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us. 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,” says Lars Wingefors, co-founder and Group CEO of Embracer.
Hopefully this does indeed safeguard the future of a large number of game developers, along with the MudRunner/SnowRunner and Dakar franchises.
Keep up with all the latest sim racing industry news, here.
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