Electronic Arts Inc. (NASDAQ: EA), a Redwood City, Calif.-based globalleader in interactive entertainment, is to acquire Glu Mobile Inc. (NASDAQ: GLUU), a global developer and publisher of mobile games including Design Home, Covet Fashion, and MLB Tap Sports Baseball.
Under the terms of the agreement, EA will acquire Glu for $2.1 billion in enterprise value. Glu stockholders 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. Upon closing, the acquisition will be immediately accretive to Electronic Arts’ total net bookings, and is expected to grow underlying profitability beginning in its first year.
The acquisition will add significant scale to Electronic Arts’ mobile games business. The combination of Electronic Arts and Glu creates a leading mobile product portfolio that includes more than 15 top live services across fast-growing genres with a combined $1.32 billion in bookings over the last twelve months. Bringing together the best-in-class mobile development teams at Glu and Electronic Arts’ mobile business, with a collective portfolio of powerful IP in sports, lifestyle, RPG, casual and other genres, and leveraging Electronic Arts’ marketing and distribution strength to generate global reach, the combined organization will build on EA’s network of 430 million players, including more than 100 million monthly active players in mobile, and expand to new audiences and demographics all over the world.
Led by Andrew Wilson, CEO, Electronic Arts develops and delivers games, content and online services for Internet-connected consoles, mobile devices and personal computers. It is recognized for a portfolio of brands such as EA SPORTS™ FIFA, Battlefield™, Apex Legends™, The Sims™, Madden NFL, Need for Speed™, Titanfall™ and Plants vs. Zombies™.
Founded in 2001 and led by Nick Earl, CEO, Glu Mobile is a developer and publisher of mobile games. Its diverse portfolio features top-grossing and original and licensed IP titles including, Covet Fashion, Deer Hunter, Design Home, Diner DASH Adventures, Disney Sorcerer’s Arena, Kim Kardashian: Hollywood and MLB Tap Sports Baseball available worldwide on various platforms including the App Store and Google Play.
Glu is headquartered in San Francisco with additional locations in Foster City, Toronto and Hyderabad.