Video game publisher Electronic Arts (EA) on Tuesday announced the acquisition of casual games developer PopCap Games Inc. for $1.3 billion.
According to The Telegraph, the Redwood City-based EA has already paid $650 million in cash along with $100 million in stocks to acquire the maker of the popular bejeweled games. It has been informed that EA would pay $550 million if the company manages to achieve the standard set by EA in another two years.
"They're basically the only studio out there that has built enduring, repeatable hits. We refer to them as the Pixar of the casual gaming space. The combination is powerful," Barry Cottle, the executive vice president and general manager of the Interactive division at EA stated.
The acquisition is a step taken by EA towards making its presence felt in the gaming market across new age social networking websites and smartphones. The company has mentioned that it is in close competition with gaming rival Zynga and plans to capture the casual games market soon.
Analysts believe that EA is on a fast spree to acquire gaming companies. In 2009, EA acquired video game maker for social websites, Playfish for $400 million in order to stake a foothold in the social gaming market.