Electronic Arts to acquire PopCap Games
Electronic Arts, a multi-platform game publisher and distributor, announced it would acquire mobile gaming company PopCap Games for around $650 million in cash and $100 million in shares. The price could balloon to $1.3 billion if PopCap reaches certain financial milestones.
TechCrunch last month reported that EA was courting PopCap for around $1 billion.
"PopCap has a proven financial trajectory with sustained revenue growth and double-digit operating margins," said Electronic Arts CFO Eric Brown.
PopCap designs games for desktop computers, gaming consoles, iOS and Android. It is known for publishing the popular mobile games Plants vs. Zombies, Bejeweled and Zuma. Over 25 percent of its business comes from mobile alone.
"EA and PopCap are a compelling combination," said Electronic Arts CEO John Riccitiello. "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."
Electronics Arts seems to be on a buying spree. In May, it purchased mobile game studio Firemint. And in October, Electronic Arts scooped up mobile gaming publisher Chillingo.
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