Electronic Arts Inc. said Monday it was acquiring Glu Mobile Inc. in a $ 2.4 billion deal to expand a business area where the video game giant has had mixed success.
The cash deal, which is expected to end in the June quarter, will bring Glu’s mobile games to the EA, such as “Kim Kardashian: Hollywood”, “Diner Dash” and “MLB Tap Sports Baseball”. Glu shareholders will receive $ 12.50 per share, representing a 36% premium over Glu’s closing price on Friday, EA said.
Glu shares rose 34% on Monday to $ 12.56.
“We made this deal because we believe that mobile is the fastest growing platform on the planet” for video games, said Andrew Wilson, EA’s chief executive. “The combination of these two companies creates a market leader in lifestyle and sports.”
Mr Wilson added that Glu, which has around 800 employees, will be able to build games based on EA’s intellectual property and take advantage of its marketing expertise and global presence to grow. Glu will be integrated into the EA, but will continue to work independently on the games in its portfolio, and chief executive Nick Earl, who once served as head of EA’s mobile division, will remain in charge.