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 contributed to the development of major franchises such as Call of Duty and PUBG.
By acquiring Lost Boys, Gearbox adds over 220 employees, bringing its total headcount 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 increase the size of its own team to 350 by 2024.
In the future, Lost Boys will be a subsidiary of Gearbox, which is owned by Embracer. Lost Boys “will operate independently”, Gearbox said, as it works “in conjunction” 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 purchase as a “strategic advisor”. Gearbox used Fenwick & West as its legal advisor.
Gearbox’s purchase of Lost Boys is just the latest major acquisition of 2022, a year that industry watchers expect to be among the all-time greatest for mergers and acquisitions. Earlier this year, Microsoft announced plans to buy Activision Blizzard, Sony proposed to buy Bungie, and Take-Two is looking to acquire Zynga in massive acquisitions that could shake up the industry.
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