Electronic Arts to buy mobile-games developer Glu Mobile in $2.1B deal

Electronic Arts Inc. struck an agreement to acquire Glu Mobile Inc., a global developer and publisher of mobile games.

Glu stockholders will receive $12.50 in cash for each share of Glu stock, representing an equity value of $2.4 billion, and a total enterprise value of $2.1 billion, including Glu's net cash of $364 million. The deal is expected to close in the quarter ending June 30.

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, the company said Feb. 8.

The boards of Electronic Arts and Glu Mobile approved the transaction, with Glu Mobile's board recommending that its stockholders also approve the deal.

Glu Mobile's team of almost 800 staff, including more than 500 mobile-game developers, will join Electronic Arts after deal completion.

Glu Mobile, which developed games such as Contract Killer: Zombies and Gun Bros, has been rumored to be an M&A target since 2012.