Embracer Group enters into agreement to acquire OÜ Fractured Byte
Embracer Group AB (“Embracer”), through its wholly owned subsidiary Saber Interactive Inc.[1] (“Saber”), has entered into an agreement to acquire 100 percent of the shares in OÜ Fractured Byte (“Fractured Byte”). Fractured Byte is a well-regarded game studio, with headquarters in Estonia and a team of approx. 50 developers based across Ukraine, primarily working with independent game development and porting projects. Through the acquisition, Saber onboards a creative and cost-effective studio with a founder-led team, that will continue to collaborate with Saber on development projects.
[1] Acquired through Embracer’s wholly owned subsidiary Embracer Group Lager 2 AB and will be part of the Saber Interactive group.
“Fractured Byte is an impressive studio that has done fantastic work on world-class IPs in its relative short history. We’re excited to bring them into the fold to collaborate closely together moving forward”, says Andrey Iones, COO and co-founder of Saber Interactive.
Background and rationale
Founded in 2018, Fractured Byte is an independent studio with headquarters located in Tallin, Estonia and with development operations across three locations in Ukraine. The studio has extensive game development experience and has collaborated with global developers and publishers on porting projects. For example, the studio’s experience involves work on titles such as Borderlands: The Legendary Collection and Tony Hawk’s Pro Skater 1 and 2 for Nintendo Switch. Fractured Byte is led by one of its co-founders who will remain as CEO.
Through the acquisition, Saber onboards an experienced team that adds to Embracer’s work-for-hire capabilities and continues to build on the longstanding relationship with the studio. Going forward, Fractured Byte will continue to operate as a subsidiary to Saber and work closely with the Saber team on internal and external game development projects.
“We are excited to team up with Saber to build on our existing relationship. We look forward to growing the studio under Saber and Embracer and continue making great games”, says co-founder and CEO of Fractured Byte.
Purchase price
The parties have agreed not to disclose the terms. The purchase price contains an upfront part and a 6-year potential earn-out and consists of a mix of cash and newly issued Embracer B shares. The terms and conditions for the acquisition are in line with previous Embracer transactions.
Completion of the transaction
The transaction is subject to certain conditions and is estimated to be completed by the end of September 2021.
Advisers
Ernst & Young AB is providing transaction support and Baker McKenzie and Cobalt are acting as legal counsel to Embracer in the transaction.
Gaming Innovation Group reports Q2 2021
