Electronic Arts Inc. said Monday it is acquiring Glu Mobile Inc. in a $2.4 billion deal aimed at expanding an area of business in which the videogame giant has had mixed success.
The all-cash deal, which is expected to close in the June-ended quarter, will bring Glu’s mobile games such as “Kim Kardashian: Hollywood,” “Diner Dash” and “MLB Tap Sports Baseball” to EA. Glu shareholders will receive $12.50 a share, representing a 36% premium to Glu’s closing price Friday, EA said.
Glu shares rose 34% to $12.56 in extended trading Monday.
“We did this deal because we believe mobile is the fastest-growing platform on the planet” for videogames, EA Chief Executive Andrew Wilson said. “The combination of these two companies creates a market leader in lifestyle and sports.”
Mr. Wilson added that Glu, which has about 800 employees, will be able to build games based on EA’s intellectual property and take advantage of its marketing expertise and global presence to grow. Glu will be integrated into EA but continue to work independently on the games in its portfolio, with Chief Executive Nick Earl, who once served as the head of EA’s mobile division, remaining in charge.
