EA Buys Two Video Games Studios
October 12, 2007 | by Christopher Nickson
EA is spending a huge $810 million to acquire BioWare Corp. and Pandemic Studios.
Electronic Arts, which has given us games like the Sims franchise and Madden NFL, has reached deep into its coffers to purchase a pair of video game studios.
In a deal worth a stunning $810 million, EA has bought BioWare Corporation and Pandemic Studios, both of which were owned by VG Holding Corp, part of Elevation Partners.
Under the agreement, EA will pony up $620 million on cash to VG Holding stockholders, with another $155 million in equity to some VG Holding employees. Additionally, EA will lend VG Holding up to $35 million in the run-up to the closure of the deal.
Elevation acquired the two studios in 2005 and merged them into BioWare/Pandemic Studios. Together, the studios employ around 800 people in four studios located in Los Angeles, Austin, Edmonton, Canada and Brisbane, Australia.
"We are proud to have partnered with the management teams of BioWare/Pandemic Studios and collectively created significant shareholder value during our ownership period," said Bret Pearlman, co-founder and managing director of Elevation Partners and chairman of VG Holding Corp in a statement. "The Pandemic and BioWare teams have set a new standard for creativity that will be a great fit for EA."
The deal is set to become final in January. BioWare’s Mass Effect games is being published by Microsoft next month.
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