03:29 AM EDT, 03/28/2024 (MT Newswires) -- Take-Two Interactive Software ( TTWO ) has agreed to acquire Gearbox Entertainment from Swedish video game holding company Embracer Group for about $460 million, the companies said in separate statements.

The consideration comprises entirely of newly issued Take-Two shares, with Embracer aiming to sell these shares to receive cash proceeds after closing. The deal is expected to complete during Q1 of Take-Two's fiscal 2025 year ending June 30, subject to regulatory approvals.

The video game publisher anticipates the transaction to provide "increased financial benefits" through a fully integrated operating structure. Gearbox Entertainment is expected to operate as a studio within 2K and will be led by Chief Executive Officer Randy Pitchford.

As part of the deal, Take-Two will gain access to Gearbox Entertainment's intellectual property portfolio, including Borderlands and Tiny Tina's Wonderlands, among other franchises. The transaction excludes certain third-party publishing and other assets that Take-Two considers non-core to its business.

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