Saber Interactive Inc. is an American video game development company headquartered in Fort Lauderdale, Florida. The company was acquired by Embracer Group in February 2020 and is now a direct subsidiary of the conglomerate. Saber employs over 1,350 people. Its accumulated EBIT exceeds USD 1,520 million. The company is known for creating a wide variety of games for both iOS and Android platforms. Its games have been praised by critics and fans alike.
Saber Interactive’s accumulated EBIT exceeds USD 1,520 million
In connection with the acquisition of Saber Interactive, Embracer Group has entered into agreements with the seller(s) of the company. Under the terms of these agreements, the seller(s) will receive a 20-year profit share of the company’s business performance. The profit share scheme incorporates 10% of Saber Interactive’s realised annual EBIT and accumulated EBIT.
In addition, the company has used USD as its reporting currency. It has converted these figures to SEK at an average FX rate of 9.4582 at the end of December 2019. Saber Interactive has not engaged an independent auditor to review its combined income statement. However, management believes that these financials reflect the company’s performance. The company’s results were adjusted to reflect the impact of the Saber transaction.
The transaction is subject to customary conditions. Saber Interactive will continue to operate as a separate division under its new ownership. The Company has also agreed that no cost-saving measures or restructuring will take place. The transaction is expected to close in the third quarter of 2020. The Embracer Group’s Board of Directors will meet to approve the agreement on February 21. Saber Interactive’s accumulated EBIT exceeds USD 1,520 million and is valued at approximately 1.7 billion US dollars.
Founded in 2001, Saber Interactive is an independent video game developer and publisher. The company employs over 600 people and maintains studios in several countries. It also engages in several self-financed and work-for-hire projects. Saber Interactive also has a strong pipeline of development projects for future games and publishing products. And its revenues are expected to grow significantly during the next few years.
Company’s profit share scheme
The Company is set to merge Saber Interactive Games with Embracer Group, a Brazilian gaming company. The transaction is subject to customary conditions, including regulatory approvals. Under the Company’s profit share scheme, shareholders will receive 10% of realised annual EBIT and accumulated EBIT in the first two years after the transaction closes. After a two-year lock-up period, the shareholders will receive an additional USD 100 million in cash.
Saber Interactive is a Swedish gaming studio with more than 600 employees. It reported a net profit of $62 million in 2019 on revenues of $105 million. The company’s purchase price was reported to be about 20% lower than Embracer’s own valuation. Embracer was founded by Lars Wingefors and has become a stock market darling, rising nearly seven hundred percent in three years.
While profit share shareholders will benefit from the game’s success, it should be understood that they will not own any company shares. Therefore, it is important to make sure the terms of the profit share agreement are completely clear. Otherwise, ambiguities could cause major headaches down the line. A profit share agreement should specify whether the shareholders will receive compensation or non-competition-related profits in the future.
The Company’s revenue and EBIT are both expected to be similar to last year, and it expects to release a similar number of games in the first half of 2020. It also expects to grow its business in the next few years, as it has a growing pipeline of future game development and publishing projects. Its shares are valued at around $1.2 billion. When the deal is finalised, the company will distribute its profits through a profit share scheme to shareholders.
Future plans
In addition to developing new video games, Saber Interactive has a few other projects in the works. Its leadership team includes former id Software studio directors Tim Willits and Todd Hollenshead and Rockstar Games’ Vice President of New Media Adam Tedman. The group’s goal is to create games with a broad appeal, and they are currently working on a series of video games based on well-known IPs.
Saber Interactive is part of the Embracer Group, which owns 31 studios around the world. Of these, 69 of them are secret projects. Since 2011, Embracer has been slowly acquiring studios, including Dambuster Studios, Gunfire Games, and Piranha Bytes. The company has also acquired several smaller studios, including Nine Rocks Games and C77 Entertainment. It has also set aside $166 million for acquisitions this fiscal year.
The company is also collaborating with Aspyr Media on a new Star Wars RPG. This game is set 4,000 years before the original Star Wars trilogy. Saber Interactive CEO Matthew Karch has called the project a “massive product.” While no concrete plans were released, the company has hinted that the game will feature modernized graphics and a new combat engine. It is also planning a new Metro game in partnership with 4A Games.
While this new development opportunity may be challenging for the studio, it is still encouraging for Saber Interactive. The studio’s previous success with The Witcher series paved the way for the company to join Aspyr’s Star Wars remake. Saber has also been working on the new version of KOTOR. It has recently acquired the IP rights to several Tolkien works. However, it is unclear whether the studio will have to start from scratch.
Upfront payment
Embracer Group has announced a $150 million upfront payment for Saber Interactive. The company is a leading port and support developer of popular games such as The Witcher 3 and World War Z. In the past, Saber has been associated with games like Call of Duty and Borderlands. It has also worked on other popular games such as Borderlands 2 and Tony Hawk’s Pro Skater. This purchase will result in up to 50 jobs being created at both companies.
As of December 2018, Saber Interactive had revenues of USD 105 million and an EBIT of USD 62 million. This is an increase from USD 38 million and USD 14 million in the same period last year. Saber Interactive does not capitalize development costs and has a high cash conversion. This translates to higher cash flow, which is helpful for the company in making decisions about where to invest. In addition, Saber Interactive has plans to continue expanding its business and develop new games.
While Saber Interactive may be a small business, the company’s recent sale to Embracer Group will result in higher profit margins for the studio. Saber has more than 600 employees and generated more than $100 million in revenue last year. The acquisition was reportedly about 20% lower than Embracer’s own, according to Handelsbanken Capital Markets. Saber Interactive co-founder Lars Wingefors will be Embracer’s second largest shareholder, and the company has a history of acquisitions and integrations.
The deal includes a $150 million upfront payment for Saber Interactive. The company will then receive an additional $375 million over three years, depending on performance. Embracer will retain the Saber Interactive brand, with its six offices in Sweden, Belarus, Spain, Portugal, and Russia. Additionally, its owners will become Embracer Group’s second largest shareholders. There are no immediate plans for restructuring, and the company has stated it is committed to continuing to be a separate company under the new ownership.
Earn-out payment
Embracer Group has bought US game developer Saber Interactive in a deal that includes an initial $150 million cash payment and an earn-out payment of up to $375 million. The deal includes all of Saber Interactive’s assets, including studios in Portugal, Sweden, and Spain. As a result of the deal, the Saber Interactive co-founders will be the second largest shareholders in Embracer Group.
Saber Interactive was founded in 2001 and is one of the largest independent game developers. It is headquartered in Maplewood, New Jersey. It has 600 internal developers and multiple studios worldwide. The studio also employs outside developers for work-for-hire projects and self-funded games. The company’s current pipeline includes eight projects, which will fall under the new partners portfolio. Saber Interactive’s revenue in 2019 was $62 million, which is significantly less than the recent Sony acquisition of Insomniac Games for $229 million.
Embracer and Saber Interactive have worked together on many projects. Both companies have expertise in game development and publishing. The acquisition of Saber Interactive enables them to develop innovative games for new platforms. It also strengthens Embracer’s position in asset care and builds on its current development portfolio. The acquisition also allows Saber to accelerate its growth, and the two companies plan to continue to work together.
The transaction is subject to customary conditions and will not result in any company restructuring. In addition, Saber Interactive’s business will operate as a separate division, without any cost-cutting or restructuring programmes. The deal also requires the approval of Embracer shareholders. In Sweden, Saber is controlled by two people, Andrey Ioney and Matthew Karch. They each hold approximately 62% of the Embracer Group’s voting power.
