Massive game company Electronic Arts just grew more massive by acquiring Pandemic and Bioware, both owned by VG Holding Corp.
EA will pay up to $620 million in cash to the stockholders of VG Holding Corp. and will issue up to an additional $155 million in equity to certain employees of VG Holding Corp., "which will be subject to time-based or performance-based vesting criteria". EA will also assume outstanding VG Holding Corp. stock options. In addition, EA has agreed to lend VG Holding Corp. up to $35 million through the closing of the acquisition. .
Pandemic, hard at work on Mercenaries 2: World in Flames and Saboteur (as well as other unnamed projects) while Bioware has nearly completed Mass Effect.
"These are two of the most respected studios in the industry and I?m glad to be working with them again. They'll make a strong contribution to our strategic growth initiatives on quality, online gaming and developing new intellectual properties," said John Riccitiello, EA's Chief Executive Officer. "We also expect this will drive long-term value for our shareholders."
The transaction is expected to close in January 2008.