$750 million deal
It has been announced this week that gaming software giant Electronic Arts is to acquire the Seattle-based developer of online games for mobile phones, tablets, PCs and social network sites, PopCap Games, for $650 million in cash and $100 million in shares of EA common stock. Based on the deal, another $550 million will be payable depending on performance. The transaction is expected to close in August.
PopCap is responsible for blockbuster titles like Plants vs. Zombies, Bejeweled, and Zuma, which proves why it’s one of the most respected developers in the domain.
“PopCap has a proven financial trajectory with sustained revenue growth and double-digit operating margins,” said EA CFO Eric Brown.
According to EA CEO, John Riccitiello, “EA and PopCap are a compelling combination. PopCap’s great studio talent and powerful IP add to EA’s momentum and accelerate our drive towards a $1 billion digital business. EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries, and more channels.”
His PopCap counterpart David Roberts added: “We picked EA because they have recast their culture around making great digital games. By working with EA, we'll scale our games and services to deliver more social, mobile, casual fun to an even bigger, global audience.”
