Electronic Arts To Buy Glu Mobile In $2.1 Bln Deal

(RTTNews) - Video game developer Electronic Arts Inc. (EA) Monday said it will acquire Glu Mobile Inc. (GLUU), a developer and publisher of mobile games including "MLB Tap Sports Baseball," "Kim Kardashian: Hollywood," and "Design Home", in a deal worth $2.1 billion.

Glu shareholders will receive $12.50 in cash for each share of Glu stock, representing a 36% premium to Glu's closing share price on February 5, 2021. The total enterprise value of the deal is $2.1 billion including Glu's net cash of $364 million.

The acquisition is anticipated to close in the quarter ending June 30, 2021, subject to approval by the Glu stockholders and other closing conditions.

Electronic Arts said the acquisition will be immediately accretive to its net bookings when the deal closes in second quarter. The acquisition is expected to grow underlying profitability beginning in its first year.

"Our acquisition of Glu combines amazing teams and deeply-engaging products to create a mobile games leader with proven expertise across many fast-growing genres," said Andrew Wilson, CEO of Electronic Arts. "Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu's games and talent, we're doubling the size of our mobile business. With a deep IP portfolio and an expanding global audience, we'll deliver more exciting experiences for our players and drive further growth for Electronic Arts."