Electronic Arts Buys Glu Mobile in $2.1 Billion Deal

Electronic Arts has entered into an agreement to acquire mobile games publisher Glu Mobile for $2.1 billion in enterprise value in a transaction expected to close in the quarter ending June 30, 2021, the companies announced.

Electronic Arts has announced it would buy Glu Mobile for $2.4 billion, bolstering its mobile platform with the addition of games such as “Design Home”, “Covet Fashion”,“MLB Tap Sports Baseball”, Disney Sorcerer’s Arena and more.

EA has offered $12.50 in cash for each Glu share, a premium of about 33% to its closing price on Monday. Shares of EA were up 1.4% in extended trading, while those of Glu were halted.

The deal, which is expected to close in the quarter ending June 30, has a total enterprise value of $2.1 billion, including Glu’s net cash of $364 million.

“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 Electronic Arts CEO Andrew Wilson in a press release. “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.”

Glu Mobile CEO Nick Earl added, “This transaction is the culmination of the tremendous work of the Glu team to deliver world-class interactive experiences for our players, while driving business momentum that has led to strong financial and operational results. It represents a terrific outcome for all of our stockholders and other key constituents. As part of Electronic Arts, we will continue capitalizing on the opportunities ahead in the expanding mobile gaming industry.”