EA in $855m deal

Source: Technology Digital

Date :12/10/2007 10:20:45

Electronic Arts Inc has announced an agreement with Elevation Partners to aquire VG Holding Group in a $855 million deal.

Under the deal, EA, the world's biggest games publisher will acquire privately held video game studios BioWare Corp and Pandemic Studios which is owned by VG Holding with backing from private equity firm Elevation Partners.

EA CEO John Riccitiello was positive of the acquisition, "These are two of the most respected studios in the industry and I'm glad to be working with them again.

“They'll make a strong contribution to our strategic growth initiatives on quality, online gaming and developing new intellectual properties."

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EA will pay up to $620 million in cash to the stockholders of VG Holding Corp. with an additional $155 million in equity to certain employees of VG Holding Corp., subject to time-based or performance-based vesting criteria.

The company will also assume outstanding VG Holding Corp. stock options.

The two developers who employ roughly 800 people across four studios in Edmonton, Canada; Los Angeles; Austin, Texas; and Brisbane, Australia will join the EA Games label currently run by Frank Gibeau.

October 12 2007

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