Electronic Arts Inc mentioned on Monday it could purchase Glu Mobile Inc for $2.Four billion, bolstering its cell platform with the addition of video games equivalent to “Design House”, “Covet Vogue”, and “MLB Faucet Sports activities Baseball”.
The U.S. online game developer has supplied $12.50 in money for every Glu share, a premium of about 33% to its closing value on Monday. Electronic Arts (EA) inventory was up 1.4% in prolonged buying and selling, whereas Glu shares surged 34%.
The deal, which is predicted to shut within the quarter ending June 30, offers Glu an enterprise worth of $2.1 billion.
San Francisco-based Glu obtained a number of takeover gives final yr as its inventory has underperformed these of its gaming friends, a supply aware of the scenario mentioned.
EA, identified for its sports activities gaming franchise, expects to increase its cell gaming titles by way of the acquisition and entice extra feminine avid gamers by way of the informal recreation portfolio Glu owns, together with “Kim Kardashian: Hollywood”.
EA has been on a shopping for spree because it sits on a powerful stability sheet and appears to scale with extra gaming titles. In December, it acquired UK-based Codemasters for $1.2 billion. [nL4N2IU1P1]
Videogame gross sales in america hit a file $56.9 billion final yr, in response to analysis agency NPD, as demand for digital leisure soared after main public occasions have been canceled to stem the unfold of the novel coronavirus.
International gaming income has grown by 13.3% final yr, sooner than PC and console gaming, information from analytics agency Newzoo confirmed.
The gaming trade has seen a sequence of consolidations up to now few months, together with Microsoft’s $7.5 billion acquisition of ZeniMax Media and Swedish online game group Embracer shopping for Gearbox and Easybrain.
Earlier this month, EA raised its annual gross sales outlook, betting on robust gross sales of its sports activities titles together with “FIFA 21” and “Madden NFL 21”.
J.P. Morgan suggested EA on the deal, whereas Goldman Sachs, Morgan Stanley and UBS Securities have been advisors to Glu.