Troubled European publishing giant Embracer Group has sold Saber Interactive as part of a bid to leave Russia.

In a release to investors, the company said that it had divested this division for SEK2.527 billion ($247 million) to Beacon Interactive. That's a new venture set up by Saber Interactive co-founder and president Matthew Karch. This also means that Embracer is no longer operating in Russia. 

The deal sees not only Saber Interactive go to Beacon, but also New World Interactive, Nimble Giant Entertainment, 3D Realms, Slipgate Ironworks, Mad Head Games, Fractured Byte and Sandbox Strategies. Furthermore, Beacon has been given the option to acquire both 4A Games and Zen Studios at a later date for a currently undisclosed price. 

“I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us," Embracer CEO and co-founder Lars Wingefors said.

"This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership. At the same time, we keep key companies, valuable IPs and future publishing rights. Cash flow is immediately improved, and we remain committed to reducing net debt. The transaction yields additional headroom to amortize debt in accordance with existing bank agreements and will improve financial flexibility. This is the first transaction of the previously mentioned structured processes and marks a small but important step in our journey to transform Embracer into the future for the benefit of all employees, gamers, and shareholders."

Karch added: “Over the past four years, I have been proud to be part of Embracer’s amazing transformation into one of the leading game companies in the world. As part of the company’s efforts to reorganise for a changed industry and geopolitical challenges, we jointly felt it was the right decision for both Embracer and the core of Saber to part ways. 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. This transaction also safeguards the livelihoods of hundreds of professionals, many of whom I have worked with for over two decades."

Embracer acquired Saber back in February 2020 in a deal worth as much as $525 million.