PopCap is one of the largest digital and social gaming companies, with more than 150 million games installed and played worldwide. Titles include Plants vs. Zombies, Bejeweled and Zuma. In 2010, 80 percent of PopCap’s revenue was on digital platforms.
EA will pay approximately $650 million in cash and $100 million in shares of EA common stock to be issued to certain stockholders of PopCap. In addition, the PopCap sellers are entitled to additional variable cash consideration, contingent upon achieving non-GAAP earnings before interest and tax performance milestones through December 2013.
“EA and PopCap are a compelling combination,” says John Riccitiello, chief executive officer of EA. “PopCap’s great studio talent and powerful IP add to EA’s momentum and accelerate our drive towards a $1 billion digital business. EA’s global studio and publishing network will help PopCap rapidly expand their business to more digital devices, more countries and more channels.”
“We picked EA because they have recast their culture around making great digital games,” says David Roberts, chief executive officer of PopCap. “By working with EA, we'll scale our games and services to deliver more social, mobile and casual fun to an even bigger global audience.”