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EA buys PopCap for $750 million

Madden publisher make huge casual games move buying Plants Vs Zombies and Bejewelled creator

Publisher Electronic Arts is to buy social and casual games giant PopCap Games for $650 million plus $100 million in stock.

The deal is expected to close in August 2011 and could include additional payments of $550 million over two years.

"EA and PopCap are a compelling combination," said EA CEO John Riccitiello. "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," added David Roberts, CEO of PopCap. "By working with EA, we'll scale our games and services to deliver more social, mobile, casual fun to an even bigger, global audience."

The publisher said that PopCap properties such as Plants Vs Zombies, Zuma and Bejewelled will be heading to new platforms and markets as a result of the deal.

"PopCap has a proven financial trajectory with sustained revenue growth and double-digit operating margins," offered EA CFO Eric Brown. "On a non-GAAP basis, this deal is expected to be at least ten-cents accretive in fiscal year 2013."

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Matt Martin avatar
Matt Martin: Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.
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