Electronic Arts Inc. said Monday it will acquire Glu Mobile Inc. in a $ 2.4 billion deal aimed at expanding a business area in which the video game giant has had mixed success.
The cash deal, which is expected to close during the quarter ended June, will bring EA Glu mobile games such as “Kim Kardashian: Hollywood”, “Diner Dash” and “MLB Tap Sports Baseball” . 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 on Monday.
“We made this deal because we believe the mobile is the fastest growing platform on the planet” for video games, said Andrew Wilson, executive director of EA. “The combination of these two companies creates a market leader in lifestyles and sports.”
Wilson added that Glu, which has about 800 employees, will be able to create games based on EA’s intellectual property and leverage its marketing experience and global presence to grow. Glu will join EA, but will continue to work independently in the games in his portfolio, with CEO Nick Earl, who was the head of EA’s mobile division, remaining in charge.