Embracer Cuts Debt With $460 Million Gearbox Sale to Take-Two

A Swedish game developer took another step to slash debt Thursday, by agreeing to sell Gearbox Entertainment to Take-Two Interactive Software Inc. for $460 million.

Lars Wingefors, chief executive officer of Embracer Group AB, called it “the final structured divestment process.”

The all-stock deal will see Embracer sell the Two-Take shares soon after the deal closes, the company said. The expected net proceeds of 3.2 billion to 3.5 billion Swedish kronor ($301-329 million) will be used entirely to cut net debt. The company, which owns the rights to the Tomb Raider and Lord of the Rings franchises, will ...