Jamdat acquires Blue Lava Wireless
Mobile games publisher Jamdat has acquired Hawaii-based Blue Lava Wireless in an agreement which includes the rights to publish Tetris for mobile phones for the next 15 years, boosting the company's stock price.
The deal is worth a total of around $137 million, and includes $60 million in cash and 4.05 million shares of Jamdat stock at closing. In addition, a deferred payment of $13.7 million will be paid in cash or stock according to Jamdat's preference.
Jamdat forecasts revenues of $15m for Q1 2005 - up 30 per cent from the previous quarter and exceeding earlier forecasts of $14.1m. The company now predicts that the acquisition of Blue Lava and Tetris publishing rights will add 10 cents to GAAP earnings per share in 2005. As a result of the announcements, shares rose more than 16 per cent in value.
"There is significant strategic value in this acquisition. Tetris is a killer wireless gaming application and together with our existing content portfolio, we believe we will have an unmatched product offering for carriers and consumers," said Jamdat chairman and CEO Mitch Lasky.
"The acquisition will also enhance Jamdat's global distribution strength, and increase our market share in Europe and Asia."
Jamdat will continue to operate a studio in Honolulu and retain Blue Lava employees, with founder Henk Rogers signed up to manage the Tetris franchise.
"Jamdat's industry leading position and distribution muscle make it the perfect partner to bring the Tetris brand to wireless consumers around the world," said Rogers.
Jamdat is best known for publishing titles such as Bejeweled, Yahtzee, Jamdat Sports NBA 2005 and Jamdat Bowling. The company also acquired mobile games developer Downtown Wireless earlier this year.