EA to acquire PopCap Games

Electronic Arts (EA) is to acquire PopCap Games, a provider of games for mobile phones, tablets, PCs and social network sites. PopCapa’s titles include Plants vs. Zombies, Bejeweled, and Zuma.

“EA and PopCap are a compelling combination,” said EA 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.”

“PopCap has a proven financial trajectory with sustained revenue growth and double-digit operating margins,” said EA CFO Eric Brown. “On a non-GAAP basis, this deal is expected to be at least ten-cents accretive in fiscal year 2013.”

PopCap has more than 150 million games installed and played worldwide on platforms such as Facebook®, RenRen, Google™, iPhone™, iPad™ and Android. In calendar year 2010, approximately 80% of PopCap’s revenue was on high growth digital platforms.

EA will pay approximately $650 million in cash and $100 million in stock. Plus an earn-out that could be worth (at the top end) up to $550M. EA will also provide up to $50 million in long-term equity retention awards to PopCap employees to be granted over the next four years.

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