Electronic Arts has struck a deal to acquire Jamdat Mobile for $680 million. The merger agreement calls for EA to pay $27 cash per share and also assume outstanding stock options for a total of about $680 million, according to EA.
In a statement, EA CEO Larry Probst said of the merger: "This is an important strategic acquisition for Electronic Arts. Together we intend to build a leading global position in the rapidly growing business of providing games on mobile phones. We look forward to the Jamdat team joining EA."
Jamdat Mobile was founded in 2000 by former Activision executive Mitch Lasky. The company had modest success thanks to a surprising hit game, Snake. However, the company has not had a ton of success in the mobile market since then, despite many new titles.
EA is one of the biggest companies in the game industry, but has almost no presence in the mobile gaming arena.