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Electronic Arts Acquires JAMDAT MobileAccelerates EA's Objective of Global Expansion in Mobile (December 09, 2005)
Electronic Arts Inc. and JAMDAT Mobile Inc. announced 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 JAMDATs casual blockbusters like Tetris, Bejeweled and JAMDAT Bowling, will create a powerful product line-up.
Upon closing, JAMDAT CEO Mitch Lasky will lead EAs mobile games business worldwide. The mobile businesses will be combined into one team.
Transaction and Financial Information
The proposed acquisition has been approved by the board of directors of each company and is subject to customary closing conditions, including approval by JAMDATs stockholders and regulatory approvals.
The acquisition is expected to close in EAs fiscal fourth quarter.
In EAs fiscal fourth quarter, non-recurring acquisition-related GAAP charges are expected to be between $0.10 to $0.15 per diluted share.
Electronic Arts and JAMDAT will host a conference call today, December 8, 2005, at 2:30 pm Pacific Time / 5:30 pm Eastern Time to discuss the transaction.
In addition, EA will discuss recent trends in holiday sales.
Listeners may access the conference call live through a dial-in number at (800) 819-9193, access code 4601662, or via webcast at http://investor.ea.com. A dial-in replay of the conference call will be provided until December 16, 2005 at (719) 457-0820, access code 4601662. The webcast archive of the conference call will be available for one year at http://investor.ea.com.
Related Keywords:Electronic Arts, JAMDAT Mobile, Global Expansion in Mobile