Borderlands developer Gearbox Entertainment Company has acquired developer Lost Boys Interactive, a studio that co-developed Tiny Tina’s Wonderlands with Gearbox itself. Lost Boys Interactive has also helped develop major franchises like Call of Duty and PUBG.
By acquiring Lost Boys, Gearbox adds over 220 employees, bringing its total workforce to around 1,300.
Gearbox founder Randy Pitchford said Lost Boys will have an “immediate and positive impact” on Gearbox and its future products.
Lost Boys was founded in 2017 and is a “remote-first” company that also has offices in Madison, Wisconsin and Austin, Texas. The studio aims to grow its own headcount to 350 by 2024.
Going forward, Lost Boys will be a subsidiary of Gearbox, which itself is owned by Embracer. Lost Boys “will operate independently,” Gearbox said, as it works “in tandem” with Gearbox on new games. Lost Boys CEO Shaun Nivens will report to Gearbox President Steve Jones.
Terms of the deal were not disclosed, but Gearbox confirmed that Juno Capital Partners assisted Gearbox in the takeover as “strategic advisor”. Gearbox used Fenwick & West as legal counsel.
Gearbox’s takeover of Lost Boys is just the latest big acquisition of 2022, a year industry watchers expect to be among the biggest ever for mergers and acquisitions. Already so far this year, Microsoft has announced plans to buy Activision Blizzard, Sony has offered to buy Bungie, and Take-Two is looking to snap up Zynga in massive takeovers that could rock the industry.
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