M&A · Tech · Services-Computer Programming Services
Electronic Arts Inc. to acquire GLU Mobile Inc
Announced Feb 8, 2021 · Closed Apr 29, 2021
Deal value$2.10BEV $2.10B
Premium36.0%To unaffected price
EV / Adj. EBITDA—4.1x EV / Revenue
ConsiderationAll cash$12.50 per share
Transaction
- Acquirer
- Electronic Arts Inc. (EA)
- Target
- GLU Mobile Inc
- Buyer type
- Strategic
- Offer price per share
- $12.50
- Enterprise value
- $2.10B
- Status
- Closed Apr 29, 2021
Deal protections
- Break fee (target pays)
- $78.9M · 3.8%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- JPMorgan
- To the target
- Goldman Sachs, Morgan Stanley, UBS
- Goldman Sachs fee
- $15.0M
- Morgan Stanley fee
- $15.0M
Sector context · Tech
- Comparable deals
- 18 in the prior 24 months
- Premium
- 36.0% vs. 33.3% sector median
- EV / Adj. EBITDA
- Sector median 17.3x
- Break fee
- 3.8% vs. 2.8% sector median
Timeline
- AnnouncedFeb 8, 2021
- Proxy filedMar 12, 2021
- Definitive proxyMar 25, 2021
- Shareholder voteApr 26, 2021
- ClosedApr 29, 2021
Valuation · fairness opinions
Discounted cash flowGoldman Sachs$9.40$14.60
Discounted cash flowGoldman Sachs$12.00$19.00
Future share priceGoldman Sachs$10.20$14.90
Future share priceGoldman Sachs$11.70$18.30
Precedent transactionsGoldman Sachs$6.00$7.50
Analyst price targetsMorgan Stanley$10.00$14.25
Analyst price targetsMorgan Stanley$9.12$13.00
Offer $12.50
Implied value per GLU Mobile Inc share by analysis, from Goldman Sachs and Morgan Stanley · DCF discount rate 7.5%–9%.