Videogame maker Electronic Arts (EA) has agreed to be acquired by private equity firms PIF, Silver Lake, and Affinity Partners in an all-cash deal worth $55 billion U.S.
The deal will see Electronic Arts taken private and delisted from the Nasdaq Composite (NDAQ) exchange on which it trades.
Stockholders of Electronic Arts will receive $210 U.S. per share in cash as part of the deal.
EA stock is up 6% in premarket trading on Sept. 29 on news of the take private deal. That builds on a 15% gain the previous trading session when news of a possible acquisition first broke.
According to media reports, the $55 billion U.S. deal is the largest leveraged buyout of all time.
A leveraged buyout is when debt is used for an acquisition, a tactic traditionally used by private equity firms and activist investors.
Electronic Arts makes popular video games including The Sims and Madden NFL football. The company is known for its focus on sports-based video games.
Prior to Sept. 29, EA stock had risen 33% this year to trade at $193.35 U.S. per share.
Tech Insider
