Electronic Arts is set to acquire developer and publisher Glu Mobile.
EA will purchase the Design Home creator for $2.1 billion in enterprise value as per the agreement. For each share of Glu stock, company shareholders will receive $12.50, which represents a stock premium of 36 per cent.
Upon closing the deal, Glu is expected to have an immediate impact on EA's total net bookings.
Over the past 12 months, between EA and Glu Mobile, 15 smartphone titles have managed to generate $1.32 billion across a variety of genres. In September 2020, Glu launched a real-life e-commerce store inspired by Design Home.
"This transaction is the culmination of the tremendous work of the Glu team to deliver world-class interactive experiences for our players, while driving business momentum that has led to strong financial and operational results," said Glu CEO Nick Earl.
"It represents a terrific outcome for all of our stockholders and other key constituents. As part of Electronic Arts, we will continue capitalising on the opportunities ahead in the expanding mobile gaming industry."
Overall, Electronic Arts boasts 430 million players across its vast library of games, of which 100 million are monthly active players on mobile.
It has become more and more apparent over the past few months that the American publisher is keen on strengthening its presence in the mobile games market. Earlier this month, it was confirmed that EA has six new football mobile titles in the works.
"Our acquisition of Glu combines amazing teams and deeply engaging products to create a mobile games leader with proven expertise across many fast-growing genres," said Electronic Arts CEO Andrew Wilson.
"Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu's games and talent, we're doubling the size of our mobile business. With a deep IP portfolio and an expanding global audience, we'll deliver more exciting experiences for our players and drive further growth for Electronic Arts."
The acquisition of Glu Mobile has come shortly after Codemasters execs approved EA's acquisition offer.