Embracer Group has entered into an agreement to divest selected assets, from the operative group Saber Interactive for a purchase price of $247M, including assumed earnout liabilities of $44M but before any additional consideration. Through this divestment, Embracer ceases all operations in Russia, while immediately improving cash flow, reducing capex, net debt and future liabilities. The buyer is Beacon Interactive, a company controlled by Saber Interactive co-founder Matthew Karch. “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. Furthermore, Embracer will be entitled to an additional consideration of up to $94M if the Buyer resells the assets for a higher consideration subject to certain conditions and time periods. The divested assets include 38 ongoing game development projects, amounting to a book value of around SEK2.3B. The divested assets also include certain proprietary engine technology and game tools relating to the divested companies.
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