Electronic Arts to acquire JAMDAT for $680 mn

JAMDAT Mobile Inc, a global publisher of wireless entertainment applications, has entered into a definitive merger agreement with Electronic Arts Inc (EA), according to which EA will acquire JAMDAT for approximately $680 million.

EA will pay $27 per share in cash in exchange for each share of JAMDAT's common stock and will assume outstanding stock options for around $680 million. JAMDAT, which has its development centre in Hyderabad, has an application portfolio that includes games, ringtones, images and other content.

Speaking to Business Standard, Surya Pulagam, managing director of JAMDAT Mobile (India), said, "The acquisition is likely to get through in the next quarter. We expect some expansion at our Hyderabad centre due to this development."

JAMDAT's development centre in Hyderabad employs 50 people out of the 500 that the Nasdaq-listed company employs globally.

Los-Angeles headquartered JAMDAT's operations are spread over Honolulu, Montreal, Tokyo, London and Bucharest as well.

Headquartered in Redwood City, California, EA is a leading interactive entertainment software company.

According to reports available, EA and JAMDAT together plan to publish over 50 games for mobile phones in the first year, following the completion of the acquisition. This includes titles like Tetris, Bejeweled, JAMDAT Bowling, Need For Speed, EA SPORTS Madden NFL Football and EA SPORTS FIFA Soccer.

The mobile business will be consolidated into one team and JAMDAT's chief executive officer, Mitch Lasky will lead EA's mobile games business globally.

The acquisition has been approved by the board of directors and shareholders of both the companies.

Earlier this year, JAMDAT had announced the completion of acquisition of Blue Lava Wireless LLC. As part of the transaction, JAMDAT acquired an exclusive 15-year worldwide license for the wireless telephony device rights for Tetris, a mobile game.