Electronic Arts to buy PopCap Games

U.S. videogame giant Electronic Arts Inc. (EA) on Tuesday said it has agreed to buy PopCap Games, a leading provider of casual games for digital platforms, in a deal to accelerate its digital transformation. EA said it will pay about 650 million U.S. dollars in cash and 100 million dollars in shares of EA common stock to acquire privately-held PopCap, the maker of blockbuster games including " Plants vs. Zombies," "Bejeweled" and "Zuma". In addition, PopCap's owners are entitled to receive as much as 550 million dollars in earn-outs if certain earnings targets are met through December 2013, according to EA, which is headquartered in Redwood City in the U.S. state of California. "EA and PopCap are a compelling combination," John Riccitiello, EA's chief executive officer, said in a statement. "PopCap's great studio talent and powerful IP add to EA's momentum and accelerate our drive towards a 1-billion-dollar digital business," he noted. PopCap is one of the largest providers of casual videogames for mobile phones, tablets, PCs and social network sites, with more than 150 million games installed and played worldwide on platforms such as Facebook, RenRen, Google, iPhone, iPad and Android. EA said the purchase of PopCap is expected to close in August this year, subject to customary closing conditions including regulatory approvals.