Embracer has sold Saber Interactive for $247 million.

As announced by the firm in a statement published today, it has agreed to divest selected assets from Saber to Beacon Interactive, a new company founded by Saber’s co-founder Matthew Karch.

Saber will retain a number of studios as part of the sale, including: Nimble Giant, 3D Realms, Sandbox Strategies, New World Interactive, Slipgate, Mad Head Games, Fractured Byte, and DIGIC.

As for Embracer, the firm will keep the following studios: Zen Studios, 4A Games, Tripwire, Beamdog, Tuxedo Labs, Demiurge, Shiver, Aspyr, Snapshot, and 34 Big Things.

It will also retain IPs and future publishing rights for a variety of titles, including various unannounced AA and AAA projects in addition to Killing Floor 3 and Teardown.

As a result of the sale, Embracer’s debt will decrease by SEK 2.1 billion ($205 million) and will see the company cease all operations in Russia.

“I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us,” said Embracer CEO Lars Wingefors. “This transaction puts both companies in a stronger position to thrive going forward.”

“As part of the company’s efforts to reorganise for a changed industry and geopolitical changes, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways,” said Saber co-founder and director of Beacon Interactive Matthew Karch.

“This divestment leaves both parties in much better positions to grow our respective businesses. I will continue to remain a large, long-term shareholder of Embracer and we will remain partners on several ongoing and future projects.”

Embracer originally acquired Saber Interactive for $525 million in 2020.

The company ended 2023 with a debt of SEK 16.1 billion ($1.5 billion), and said alongside its most recent financial results that it’s unlikely to meet targets of reducing its debt to SEK 8 billion ($762.1 million) by March 31.