Electronic Arts To Acquire Respawn Entertainment - Quick Facts

(RTTNews) - Electronic Arts Inc. (EA) announced an agreement to acquire Respawn Entertainment, LLC, an independent game development studio and creators of AAA shooter and action games. Respawn is the creator and developer of the critically-acclaimed Titanfall franchise.

Electronic Arts will pay $151 million in cash, and up to $164 million in long-term equity in the form of restricted stock units to employees, which will vest over four years. In addition, EA may be required to pay additional variable cash consideration that is contingent upon achievement of certain performance milestones, relating to the development of future titles, through the end of calendar 2022. The additional consideration is limited to a maximum of $140 million.

The acquisition is expected to be neutral to EA's net income in fiscal 2018 and 2019. The transaction is expected to close by the end of the calendar 2017 or soon thereafter.