Electronic Arts Inc. and JAMDAT Mobile Inc. have 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 titles like Tetris, Bejeweled, JAMDAT Bowling, Need For Speed, EA SPORTS Madden NFL Football and EA SPORTS FIFA Soccer. Upon closing, JAMDAT CEO Mitch Lasky will lead EA's mobile games business worldwide. The mobile businesses will be combined into one team.
The proposed acquisition has been approved by the board of directors of each company and is subject to customary closing conditions, including approval by JAMDAT's stockholders and regulatory approvals. The acquisition is expected to close in EA's fiscal fourth quarter. In EA's fiscal fourth quarter, non-recurring acquisition-related GAAP charges are expected to be between $0.10 to $0.15 per diluted share.