Law Firm Guides $525 Million Merger
“Swedish video game company, Embracer Group AB has agreed to pay up to $525 million to pick up New Jersey-based peer Saber Interactive Inc., the companies said Wednesday, in a transaction put together with assistance from Baker McKenzie, Edelboim Lieberman and Comiter Singer.
The deal stands to bolster Embracer’s portfolio through the addition of a game developer and publisher that has six global offices and posted roughly $105 million in revenues last year alone, according to a statement. In addition to its Maplewood, New Jersey headquarters, Saber has studios in Russia, Sweden, Belarus, Spain and Portugal
Formed in 2001, Saber is the video game developer behind World War Z, a third-person shooter that was released in 2019. The game is loosely based on the book and film of the same name, and has sold more than 3 million units. Saber has also made game titles like mudrunner and NBA Playgrounds, and has four announced and eight unannounced projects in development.
“Saber has been on our radar a very long time because of their deep history of consistently high quality work,” said Lars Wingefors, founder and CEO of Embracer.
Following the deals completion, Saber will continue to operate as an independent entity within Embracer, and Matthew Karch and Andrey Iones, co-founders and owners of Saber, will jointly become the second largest shareholders in Embracer.
“Over the course of 19 years as an independent developer, Saver has had its share of suitors,” Karch said in the press release. “With Emracer Group, we’ve at least found the perfect partner. We could not be more thrilled to see through the many projects we’re dreamed of together.”
Under the terms of the transaction, Embracer will pay $150 million upfront, with up to additional $375 million coming later on if certain milestones are hit. The $150 million will be paid in a mixture of cash and newly issued A and B shares of Embracer.
The deal is subject to customary closing conditions, including regulatory approvals. The companies expect to clinch the transaction during the second quarter of this year.
Baker McKenzie is acting as legal counsel to Embracer, with Carnegie Investment Bank AB and Ernst & Young serving as financial advisers.
Edelboim Lieberman Oshinsky PLLC and Comiter Singer Baseman & Braun are acting as legal adviser to the shareholders of Saber in the deal, with Alantra serving as financial adviser.
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