Electronic Arts announced a definitive agreement to acquire Glu Mobile for USD 2.1 billion in enterprise value. Glu stockholders will receive USD 12.50 in cash per share, representing a 36 percent premium to Glu’s closing share price on 5 February. 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.
Electronic Arts said the acquisition will immediately add significant scale to its mobile games business. The combination of Electronic Arts and Glu creates a mobile product portfolio that includes more than 15 top live services across fast-growing genres with a combined USD 1.32 billion in bookings over the last twelve months. Bringing together the 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 organisation 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, EA said.
The boards of Electronic Arts and Glu Mobile approved the transaction, and the Glu board recommends that Glu stockholders approve the transaction and adopt the merger agreement. The bid represents an equity value of USD 2.4 billion, and a total enterprise value of USD 2.1 billion including Glu's net cash of USD 364 million. The transaction is anticipated to close in the quarter ending 30 June, subject to approval by the Glu stockholders, the receipt of required regulatory approvals and other customary closing conditions.
Separately, Glu Mobile reported annual results showing revenues up 31 percent in 2020 to USD 540.5 million. The company's net profit more than doubled, to USD 20.4 million from USD 8.9 million.
