Electronic Arts Inc. said Monday that Glu Mobile Inc. in a $ 2.4 billion deal aimed at expanding an area of business in which the video game giant has had varying degrees of success.
The all-cash deal, expected to close in the 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 per share, which is a 36% premium over Glu’s closing price Friday, EA said.
Glu shares were up 34% to $ 12.56 on extended trading Monday.
“We closed this deal because we believe mobile is the fastest growing platform in the world” for video games, said EA Chief Executive Andrew Wilson. “The combination of these two companies creates a market leader in lifestyle and sports.”
Mr. Wilson added that Glu, which has approximately 800 employees, can 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 will continue to work independently on the games in its portfolio, with Chief Executive Nick Earl, who once served as head of EA’s mobile division, remains in charge.