Electronic Arts Inc. said on Monday that they are acquiring Glu Mobile Inc. in a $ 2.4 billion deal aimed at expanding a business area where the video game giant has had mixed success.
The all-cash deal, which is expected to close in the quarter that ended in June, will bring Glus’ mobile games like “Kim Kardashian: Hollywood,” “Diner Dash” and “MLB Tap Sports Baseball” to EA. Glu shareholders will receive $ 12.50 per share, representing a 36% premium to Glu’s closing price on Friday, EA said.
Glu shares rose 34% to $ 12.56 in expanded trading on Monday.
“We made this deal because we believe mobile is the fastest growing platform on the planet” for video games, said EA CEO Andrew Wilson. “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 EA, but will continue to work independently of the games in the portfolio, with CEO Nick Earl, who once served as head of EA’s mobile division, remaining responsible.