Embracer Group AB is set to sell one of its largest subsidiaries, Saber Interactive, to a group of private investors in a deal worth up to $500 million.
As part of this transaction, Saber will become a private company with approximately 3.500 employees. The company plans to continue development on a remake of Star Wars: Knights of the Old Republic, the highly anticipated game that was pulled from its previous developer, Aspyr Media, in 2022.
The transaction represents one of Embracer's largest initiatives as part of its cost-cutting strategy, which has seen the company lay off employees and close studios around the world over the past year.
Saber, developer of games such as Snowrunner and World War Z, has studios in several countries, including the United States, Portugal and Russia. In addition to creating his own titles, he also does work for other developers.
In 2020, Embracer acquired Saber for $525 million as part of a buying spree led by CEO Lars Wingefors, who then bought at least 27 companies. Several of the acquisitions, such as Boston-based Demiurge Studios and Denver-based New World Interactive, had been folded into Saber.
Over the past year, faced with rising interest rates and the collapse of a $2 billion partnership with a gaming group backed by Saudi Arabia's sovereign wealth fund, Embracer was forced to reduce its costs. The debt-ridden company has closed several subsidiaries, canceled projects and is now looking to sell other divisions.