Swedish gaming group Embracer, which owns the Borderlands franchise and the Tomb Raider licence, announced Thursday that it was ceasing all Russian operations through the sale of subsidiary Saber Interactive.

Beacon Interactive, which is controlled by Saber Interactive co-founder Matthew Karch, will pay $247 million for the unit, according to Embracer.

"Through this divestment, Embracer ceases all operations in Russia," the company said in a statement, adding it would also improve its cash flow and reduce capital expenditure.

Saber Interactive is based in the US, but controls several game development studios in Russia and Eastern Europe.

Embracer said the divested assets included "38 ongoing game development projects," amounting to a book value of 2.3 billion kronor ($225 million).

The company added that it would "initiate a liquidation process to dissolve any Russian companies in accordance with Russian legislation."

All Russian employees had been transferred to entities working exclusively with the buyer, Embracer said.

Beacon Interactive also retained the option to buy the Ukrainian studio 4A Games -- developer of the popular Metro franchise -- for "a fixed price within a certain time period," but the terms of the deal were not disclosed.

In June 2023, the Swedish gaming group announced a vast restructuring programme which included the closing of studios and cancelling game projects.

Prior to that, Embracer had been on an acquisition spree for several years.

The restructuring programme was meant to transform the company "from our current heavy-investment mode to a highly cash-flow generative business," CEO Lars Wingefors said when it was announced.

The sale of the Saber Interactive assets would further reduce capital expenditure by 1.2 billion kronor.