Electronic Arts is expected to close its acquisition of Respawn by the end of the year, or soon thereafter.

NORTH AMERICA–Electronic Arts has entered into an agreement to acquires Respawn Entertainment, the independent game development studio behind the “Titanfall” franchise.

Under the terms of the agreement, EA will pay $151 million in cash, and up to $164 million in long-term equity in the form of restricted stock units to employees. In addition, EA may be required to pay additional variable cash consideration, which is contingent on the achievement of certain performance milestones through the end of calendar 2022.

The transaction is expected to close by the end of the year, or soon thereafter, and is subject to regulatory approvals and other customary closing conditions. The acquisition is also expected to be neutral to EA’s net income in fiscal 2018 and 2019.

Furthermore, the acquisition will build on the publishing partnership between EA and Respawn, with multiple projects currently in development including a new title in the “Titanfall” franchise, a game set in the Star Wars universe and a VR gaming experience. Respawn will also join EA’s Worldwide Studios organization.

“We’ve seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset,” says Andrew Wilson, chief executive officer, Electronic Arts. “Our longtime partnership is grounded in a shared desire to push the boundaries and deliver extraordinary and innovative new experiences for players around the world. Together, we’ve brought this to life in the ‘Titanfall’ franchise, and now with the Respawn team joining EA, we have exciting plans to accomplish even more amazing things in the future.”

Respawn is best known as the creator and developer of the critically acclaimed “Titanfall” franchise. The first game, “Titanfall,” was published by EA in 2014. Respawn and EA most recently launched “Titanfall 2” in late 2016.

“We started Respawn with the goal to create a studio with some of the best talent in the industry, and to be a top developer of innovative games,” says Vince Zampella, chief executive officer, Respawn Entertainment. “We felt that now was the time to join an industry leader that brings the resources and support we need for long term success, while still keeping our culture and creative freedom. EA has been a great partner over the years with ‘Titanfall’ and ‘Titanfall 2,’ and we’re excited to combine our strengths. This is a great next step for Respawn, EA, and our players.”