Electronic Arts Acquires PopCap Games

U.S. videogame giant Electronic Arts Inc. 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 paid $650 million cash plus $100 million in stock. PopCap can earn additional bonuses in the next two years based on the performance of its games, which include popular titles like Bejeweled, Plants vs. Zombies and Peggle.

PopCap Games was founded in 2000 and currently has 400 employees. It is headquartered in Seattle and has offices in Canada, Europe, and Asia. The company offers games both as downloads and in retail stores, along with social games on Facebook, smartphones, and game consoles. Plants vs. Zombies, Bejeweled, and Zuma are among the company’s most popular titles. According to EA, 80 percent of PopCap’s revenue comes from digital platforms, with the remaining 20 percent coming from retail sales.

EA said the purchase of PopCap is expected to close in August this year, subject to customary closing conditions including regulatory approvals.

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