EA have confirmed that they've bought out mobile/casual game publisher PopCap for a whopping $1 billion, not all in cash though, the final purchase cost EA $650 million in cash and $100 million in shares of EA common stock. The PopCap sellers are also entitled to variable earn-outs for achieving financial milestones set for 2013, which can run up to $550 million.
"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," said 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.
"PopCap has a proven financial trajectory with sustained revenue growth and double-digit operating margins," said EA CFO Eric Brown. "On a non-GAAP basis, this deal is expected to be at least ten-cents accretive in fiscal year 2013."
PopCap is one of the biggest digital and social gaming companies and are responsible for bringing popular hits like Plants vs. Zombies, Bejeweled, Zuma and more to casual gamers around the world.