STOCKHOLM (Reuters) – Swedish video game group Embracer is buying U.S. game developer Saber Interactive for up to $525 million, the Swedish company said on Wednesday.
Embracer said it would pay $150 million initially in a mix of cash and Embracer stock, and thereafter an earn-out consideration of a maximum $375 million, “subject to fulfillment of agreed milestones”. The potential earn-out payment is also in a mix of cash and shares.
“Saber has been on our radar for a very long time because of their deep history of consistently high-quality work,” Embracer CEO Lars Wingefors said in a statement.
Saber, the maker of games such as World War Z, has more than 600 staff and made an operating profit of $62 million in 2019 on revenues of $105 million.
Reporting by Johannes Hellstrom; Editing by Simon Johnson