Electronic Arts, the maker of video games like “Madden NFL,” “Battlefield,” and “The Sims,” is being acquired for $55 billion in what could become the largest private equity-funded buyout in history.
Silver Lake Partners, Saudi Arabia’s sovereign wealth fund PIF, and Affinity Partners will pay EA’s stockholders $210 per share.
PIF, which was currently the largest insider stakeholder in Electronic Arts, will be rolling over its existing 9.9% investment in the company.
The commitment to the massive deal is inline with recent activity in the gaming sector by Saudi Arabia’s sovereign wealth fund, wrote Andrew Marok of Raymond James.
Electronic Arts would be taken private and its headquarters would remain in Redwood City, California.
“Electronic Arts is an extraordinary company with a world-class management team and a bold vision for the future,” said Kushner, CEO of Affinity Partners.
EA shares, which rose nearly 5% on Monday, had jumped 15% on Friday after rumors of a takeover began to circulate. »