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EA to Acquire Glu Mobile in $2.1 Billion Cash Deal

Video-game large Digital Arts stated it would purchase Glu Mobile, developer and writer of cell video games together with “Kim Kardashian: Hollywood,” “Design House,” “Covet Trend” and “MLB Faucet Sports activities Baseball,” in a deal price $2.1 billion.

The boards of administrators of each firms have permitted the deal, below which Glu’s shareholders will obtain $12.50 in money for every share of Glu inventory. The worth of the deal is $2.1 billion together with Glu’s web money readily available of $364 million. The businesses anticipate the deal to shut in the quarter ending June 30, 2021.

Glu Mobile additionally introduced fourth-quarter and full-year 2020 outcomes, crediting the “resurgence” of “Kim Kardashian: Hollywood” — which is greater than six years outdated — for reinforcing its earnings. Final 12 months, the corporate posted income of $540.5 million, up 31% 12 months over 12 months, whereas web earnings greater than doubled to $20.4 million.

EA stated that when the Glu Mobile deal closes in Q2 2021, it is going to be instantly accretive to whole web bookings and is predicted “to develop underlying profitability” starting in the primary 12 months below its wing.

“Our acquisition of Glu combines superb groups and deeply participating merchandise to create a cell video games chief with confirmed experience throughout many fast-growing genres,” EA CEO Andrew Wilson stated in an announcement. “Mobile continues to develop as the largest gaming platform in the world, and with the addition of Glu’s video games and expertise, we’re doubling the dimensions of our cell enterprise.”

In accordance to EA, the deal will instantly add “important scale” to its cell video games enterprise, constructing on EA’s community of 430 million gamers, together with greater than 100 million month-to-month energetic gamers in cell. Glu’s almost 800 staff embrace greater than 500 cell sport builders.

“This transaction is the fruits of the great work of the Glu group to ship world-class interactive experiences for our gamers, whereas driving enterprise momentum that has led to robust monetary and operational outcomes,” stated Nick Earl, CEO of Glu, in asserting the deal. “As a part of Digital Arts, we are going to proceed capitalizing on the alternatives forward in the increasing cell gaming trade.”

Based in 2001, Glu is predicated in San Francisco with extra areas in Foster Metropolis, Calif., Toronto and Hyderabad, India. Different titles in its portfolio embrace “Deer Hunter,” “Diner DASH Adventures” and “Disney Sorcerer’s Enviornment.”

These will be a part of EA’s flagship sport franchises, which embrace “EA Sports activities FIFA,” “Madden NFL,” “Battlefield, “Apex Legends,” “The Sims,” “Want for Pace,” “Titanfall” and “Crops vs. Zombies.”

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