Investing.com– Take-Two Interactive Software Inc (NASDAQ:) said on late-Wednesday that it entered an agreement with Sweden’s Embracer Group AB (ST:) to buy U.S. game developer Gearbox Entertainment for $460 million.

Take-Two will fund the transaction entirely through newly-issued shares, the number of which will be calculated based on the five-day average price of its shares prior to the closing date of the transaction, the videogame publisher said in a press release.

Gearbox, which is known most popularly for its “Borderlands” series, will operate as a studio within Take-Two and will continue to be led by founder and CEO Randy Pitchford, along with his management team. 

Take-Two, which owns the wildly popular “Grand Theft Auto” franchise through its subsidiary Rockstar, said that it and Gearbox were in “active development” over the next installment in the Borderlands series. The acquisition is expected to close in the first quarter of Take-Two’s fiscal year 2025.