Electronic Arts (EA) – Get Report stated Monday it is purchasing Glu Mobile (GLUU) – Get Report for $12.50 a share hard cash, or $2.4 billion, in a deal to boost its cellular-game titles business enterprise.
The acquisition will merge Electronic Arts, the Redwood Town, Calif., maker of the Madden NFL franchise games, with Glu, San Francisco, recognized for its Covet Fashion, Deer Hunter, MLB Faucet Sporting activities Baseball, and Kim Kardashian: Hollywood game titles.
At final test shares of Glu Mobile leaped 35% to $12.61. They’d closed regular Monday trading up 2.2% at $9.39.
EA shares have been unchanged following hrs. They completed typical Monday buying and selling up .9% at $142.46.
Both equally boards accredited the conditions. The deal is anticipated to shut in the 2nd quarter, subject matter to problems which includes regulatory clearances and a vote of Glu holders.
“Our acquisition of Glu brings together astounding teams and deeply participating goods to make a mobile video games chief with verified skills throughout a lot of speedy-growing genres,” Andrew Wilson, chief govt of Electronic Arts, reported in a assertion.
“Cell carries on to mature as the greatest gaming platform in the planet, and with the addition of Glu’s video games and talent, we’re doubling the dimension of our mobile business. “
The mixed companies will have a portfolio which includes extra than 15 reside solutions with a mixed $1.32 billion in bookings above the previous 12 months, EA claimed.
The mixed group will “build on EA’s network of 430 million gamers, like additional than 100 million regular lively gamers in cellular,” EA stated.
The transaction involves $364 million of net dollars on Glu’s books, providing the offer a whole company benefit of $2.1 billion, the corporations said.
“As aspect of Electronic Arts, we will go on capitalizing on the possibilities forward in the expanding cellular gaming market,” reported Nick Earl, CEO of Glu, in the statement.
The blended providers will be positioned to focus on “the biggest and most well-known genres of mobile video games, including athletics, [role-playing], lifestyle, casual, and mid-core online games,” according to the assertion.
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