EA to acquire PopCap Games in a deal worth US$1.3bn

13 Jul 2011

Electronic Arts will acquire PopCap Games in a deal worth US$1.3bn in the bid to become more competitive in the social gaming market.

EA will pay US$650m in cash and US$100m in shares, but according to Reuters, EA could pay up to an extra US$550m if PopCap Games reaches performance targets in two years.

In an open letter, John Riccitiello, CEO of EA, suggested there was a tight bidding war for the games company behind Bejeweled and Plants vs Zombies, however, PopCap Games ultimately chose EA due to the working culture within the company.

Riccitiello said the acquisition was made in order to add to their social gaming offerings and to push them to their goal of reaching US$1bn in digital business for 2012. In 2010, 80pc of PopCap Games’ revenue was from high-growth digital platforms.

“Where some companies are built on a single hit, PopCap has made lightning strike again and again,” he said. 

“They have built a powerhouse of evergreen casual properties and proven their ability to create new hits again and again on the fastest-growing platforms – mobile, tablets, PC, online and Facebook.”

PopCap Games said it will join EA but the acquisition will not change what it does, as its creative culture was what interested EA.

PopCap Games has offices in Dublin, Seattle, San Francisco, Vancouver, Shanghai and Toyko.