Electronic Arts Inc. said on Monday that it is acquiring Glu Mobile Inc. in a $ 2.4 billion deal to expand a business area in which the video game giant has had mixed success.
The cash deal, due to close in the quarter ended in June, will bring Glu’s mobile games such as “Kim Kardashian: Hollywood”, “Diner Dash” and “MLB Tap Sports Baseball” to EA. Glu’s shareholders will receive $ 12.50 per share, representing a 36% premium to Glu’s closing price on Friday, EA said.
Glu’s shares rose 34% to $ 12.56 on Monday’s extended trading session.
“We did this deal because we believe that mobile is the fastest growing platform on the planet” for video games, said EA Chief Executive Andrew Wilson. “The combination of these two companies creates a market leader in lifestyle and sports.”
Mr. Wilson added that Glu, which has about 800 employees, will be able to create games based on EA’s intellectual property and take advantage of its marketing experience and global presence to grow. Glu will join EA, but will continue to work independently on games in his portfolio, with Chief Executive Nick Earl, who previously served as head of EA’s mobile division, remaining in charge.