Swedish gaming company Embracer Group AB will sell one of its largest subsidiaries, Saber Interactive, to a group of private investors in a deal worth up to $500 million (roughly Rs. 4,142 crore), according to a person familiar with the deal.

Saber will become a private company with about 3,500 employees, said the person, who requested anonymity, discussing non-public information. The company plans to continue developing a remake of Star Wars: The Knights of the Old Republic, the long-awaited game that was scrapped by its previous developer Aspyr Media in 2022.

The deal will be one of Embracer’s biggest moves yet in an ongoing cost-cutting drive that has seen layoffs and shutter studios around the world over the past year.

Saber and Embracer declined to comment.

Sabre, the developer of games like Snowrunner and World War Z, operates studios in several countries, including the US, Portugal and Russia. In addition to creating his own original titles, he works for other developers.

Embracer bought Saber for $525 million (roughly Rs 4,349 crore) in 2020 as part of a spending spree in which CEO Lars Wingefors acquired at least 27 companies. Several of the acquisitions, such as Boston-based Demiurge Studios and Denver-based New World Interactive, were folded into Sabre.

In the past year, as interest rates soared and a $2 billion (roughly Rs 16,569 crore) partnership with a gaming group backed by Saudi Arabia’s sovereign wealth fund fell through, Embracer has been cutting costs. The debt-ridden company has closed several subsidiaries, canceled projects and is looking to sell more divisions.

The $500 million figure includes an option for Saber to acquire multiple Embracer subsidiaries, the person said.

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