EA has announced that it plans to acquire Respawn Entertainment. Respawn is most know for its Titanfall game. EA says that the purchase will build on the publishing partnership that the two firms have in place already. EA and Respawn also had games in development together with a new game in the Titanfall franchise among them.
Respawn and EA were also working on a Star Wars universe game and a VR game together. "We started Respawn with the goal to create a studio with some of the best talent in the industry, and to be a top developer of innovative games," said Vince Zampella, CEO of Respawn Entertainment. "We felt that now was the time to join an industry leader that brings the resources and support we need for long term success, while still keeping our culture and creative freedom. EA has been a great partner over the years with Titanfall and Titanfall 2, and we’re excited to combine our strengths. This is a great next step for Respawn, EA, and our players."
The agreement will see EA
pay $151 million in cash and $164 million in long-term equity in the form of restricted stock units to employees that will vest over four years. EA will also have a variable cash consideration contingent on hitting certain performance milestones with future development titles that is limited to another $140 million. The deal must go through customary closing conditions but is expected to be finished by the end of 2017.
"We’ve seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset," said Andrew Wilson, CEO of Electronic Arts. "Our longtime partnership is grounded in a shared desire to push the boundaries and deliver extraordinary and innovative new experiences for players around the world. Together, we’ve brought this to life in the Titanfall franchise, and now with the Respawn team joining EA, we have exciting plans to accomplish even more amazing things in the future."