Electronic Arts Inc. and JAMDAT Mobile Inc. announced that they have entered into a definitive merger agreement under which EA will acquire JAMDAT.
EA will pay $27 per share in cash in exchange for each share of JAMDAT common stock and assume outstanding stock options for a total of approximately $680 million.
EA and JAMDAT together plan to publish over 50 games for mobile phones in the first twelve months following the completion of the acquisition, including popular titles like Tetris, Bejeweled, JAMDAT Bowling, Need For SpeedTM, EA SPORTS Madden NFLTM Football and EA SPORTS FIFA Soccer.
�This is an important strategic acquisition for Electronic Arts,� said EA Chairman and Chief Executive Officer Larry Probst. �Together we intend to build a leading global position in the rapidly growing business of providing games on mobile phones. We look forward to the JAMDAT team joining EA.�
Headquartered in Los Angeles, JAMDAT has roughly 350 employees in locations around the world, including Honolulu, Montreal, Tokyo, London, Bucharest and Hyderabad.
�We think the combination of EA and JAMDAT will benefit our shareholders,� said JAMDAT Chairman and Chief Executive Officer Mitch Lasky. �The combination of EA and EA SPORTS, along with JAMDAT’s casual blockbusters like Tetris, Bejeweled and JAMDAT Bowling, will create a powerful product line-up.�
Upon closing, JAMDAT CEO Mitch Lasky will lead EA’s mobile games business worldwide. The mobile businesses will be combined into one team.
On being asked by Animation ‘xpress as to wether the development would mean an increase or decrease in activity for Jamdat’s Hyderabad based development centre, JAMDAT Mobile (India) MD Surya Pulgam said,”We are still in the planning phase but the activity at the Hyderabad center will definitely not decrease”