Digital Arts Inc. mentioned Monday it’s buying Glu Cellular Inc. in a $2.4 billion deal geared toward increasing an space of enterprise during which the videogame big has had combined success.
The all-cash deal, which is anticipated to shut within the quarter ending in June, will convey Glu’s cellular video games akin to “Kim Kardashian: Hollywood,” “Diner Sprint” and “MLB Faucet Sports activities Baseball” to EA. Glu shareholders will obtain $12.50 in money for every share of Glu, representing a 36% premium to Glu’s closing value Friday, EA mentioned, including that the transaction will instantly contribute to its web bookings—a key trade gross sales metric that excludes deferred income.
“We did this deal as a result of we consider cellular is the fastest-growing platform on the planet” for videogames, EA Chief Govt Andrew Wilson mentioned in an interview. “The mixture of those two firms creates a market chief in life-style and sports activities.”
Mr. Wilson added that Glu will be capable of construct video games based mostly on EA’s mental property and make the most of its advertising experience and international presence to develop. Glu, which has about 800 staff, might be built-in into EA however proceed to work independently on the video games in its portfolio.
“As profitable as they’ve been, they haven’t had nice worldwide attain but,” Mr. Wilson mentioned. “This is a chance for us to assist them unlock that door.”