Shacknews Document
Electronic Arts Announces Plans to Complete Acquisition of Digital IllusionsREDWOOD CITY, Calif.--(BUSINESS WIRE)--March 17, 2006--Electronic Arts Inc. and Digital Illusions today announced plans for EA to complete its acquisition of Digital Illusions CE (DICE). The companies have unanimously agreed to a merger proposal through which EA will acquire the remaining outstanding shares of DICE, effectively making DICE a fully integrated studio within EA.
In connection with the merger, DICE shareholders will receive SEK 67.50 per share in cash, representing a premium of 30% to DICE's closing price on March 16, 2006. EA currently owns approximately 68 percent of the shares of DICE. EA also holds warrants, which entitle EA to purchase an additional 2.3 million shares. On a fully diluted basis, EA owns approximately 74 percent of the outstanding capital and votes in DICE.
The merger is subject to approval by a 2/3 majority vote of shares at the Annual General Shareholders Meeting of DICE, which is scheduled for May 24, 2006. The merger is subject to customary closing conditions and is anticipated to close in September 2006.
About Electronic Arts
Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, the company develops, publishes, and distributes interactive software worldwide for videogame systems, personal computers and the Internet. Electronic Arts markets its products under four brand names: EA SPORTS(TM), EA(TM), EA SPORTS BIG(TM) and POGO(TM). In fiscal 2005, EA posted revenues of $3.1 billion and had 31 titles that sold more than one million copies. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.
Electronic Arts, EA SPORTS, EA SPORTS BIG, EA and Pogo are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and /or other countries.
Forward-Looking Statements
Some statements set forth in this release contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause EA's or DICE's results to differ materially from expectations include the following: the possibility that EA's acquisition of DICE will not be completed or that the completion may be delayed; the reaction of EA's and DICE's customers to the acquisition; EA's ability to successfully integrate DICE's operations and employees; potential regulation of the Companies' products in key territories; developments in the law regarding protection of the Companies' products; and other factors described in EA's annual report on Form 10-K for the year ended March 31, 2005 and Form 10-Q for the quarter ended December 31, 2005. These forward-looking statements speak only as of the date of initial publication of this release. Neither Electronic Arts nor DICE intend to update these forward-looking statements.
