Video game publisher Take-Two Interactive Software said on Thursday that it has struck a definitive agreement with Embracer Group to acquireThe Gearbox Entertainment Co., the maker of the Borderlands franchise, for$460 million in stock.

The companies have worked together for nearly 20 years.

Take-Two said it expects the transaction to deepen its successful relationship withGearbox Entertainmentand to provide increased financial benefits through a fully-integrated operational structure, adding: Take-Two will acquire Gearboxs extensive portfolio of intellectual property, including full ownership of the critically and commercially acclaimedBorderlandsandTiny Tinas Wonderlandsfranchises, as well asHomeworld,Risk of Rain, Brothers in Arms,Duke Nukem, and Gearboxs future pipeline. The companies said that Gearbox currently has six key interactive entertainment projects in various stages of development, including five sequels, two of which are from theBorderlandsandHomeworldfranchises, and at least one exciting new intellectual property. Beyond that, Take-Two said there are incremental opportunities to invest in new projects and to expand Gearboxs proven franchises.

The deal excludes certain third-party publishing and other assets that Take-Two deemed non-core.

It will strengthen our industry-leading creative talent and portfolio of owned intellectual property, including the iconicBorderlandsfranchise, saidStrauss Zelnick, chairman and CEO of Take-Two. This combination enhances the financial profile of our existing projects with Gearbox and unlocks the opportunity for us to drive increased long-term growth by leveraging the full resources of Take-Two across all of Gearboxs exciting initiatives.

The transaction is anticipated to be completed during the fiscal first quarter of Take-Twos fiscal year 2025, which ends onJune 30, 2024. It is subject to the satisfaction of customary closing conditions, including regulatory approvals.

Joining forces with Take-Two Interactive and 2K will help Gearbox ascend to our next level, saidRandy Pitchford, founder and CEO ofGearbox. We set the bar for interactive entertainment and achieved remarkable results with groundbreaking, record-setting games when we worked together at arms length as partners.

Gearbox will operate as a studio within Take-Two unit 2K and will be led by Pitchford and his management team. Gearbox operates studios inFrisco, Texas, as well as Montreal,l andQuebec City, Canada.