Video-game giant Electronic Arts said it will acquire Glu Mobile, a developer and publisher of mobile games including “Kim Kardashian: Hollywood,” “Design Home,” “Covet Fashion” and “MLB Tap Sports Baseball,” in a deal worth $2.1 billion.
The boards of directors of both companies have approved the deal, under which Glu’s shareholders will receive $12.50 in cash for each share of Glu stock. The value of the deal is $2.1 billion including Glu’s net cash of $364 million. The companies expect the deal to close in the quarter ending June 30, 2021.
“Our acquisition of Glu combines amazing teams and deeply-engaging products to create a mobile games leader with proven expertise across many fast-growing genres,” said Andrew Wilson, CEO of Electronic Arts. “Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu’s games and talent, we’re doubling the size of our mobile business. With a deep IP portfolio and an expanding global audience, we’ll deliver more exciting experiences for our players and drive further growth for Electronic Arts.”
According to EA, the deal will immediately add “significant scale” to its mobile games business, building on EA’s network of 430 million players, including more than 100 million monthly active players in mobile.
“Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu’s games and talent, we’re doubling the size of our mobile business,” Andrew Wilson, chief executive officer of Electronic Arts, said in the statement.
Glu’s nearly 800 employees include more than 500 mobile game developers.
“This transaction is the culmination of the tremendous work of the Glu team to deliver world-class interactive experiences for our players, while driving business momentum that has led to strong financial and operational results,” said Nick Earl, CEO of Glu, in announcing the deal. “As part of Electronic Arts, we will continue capitalizing on the opportunities ahead in the expanding mobile gaming industry.”