Glu Agrees to Acquire Cie Games
Will Expand Portfolio with the Current Top Grossing Racing Franchise on iOS and Android
San Francisco, Calif. - July 30, 2014 - Glu Mobile Inc. (GLUU), a leading global developer and publisher of free-to-play games for smartphone and tablet devices, today announced that the company has agreed to acquire Cie Games - creators of Racing Rivals, the leading racing franchise on iOS and Android. Glu agreed to pay total consideration of approximately $100 million - approximately $30 million in cash and approximately $70 million in shares of the company`s common stock valued based on the average closing price of Glu`s common stock for the ten consecutive trading days through July 29, 2014. Glu expects the acquisition to close by the end of August 2014.
Racing Rivals launched on iOS in August 2013 and nearly one year after launch it is currently ranked as the #27 grossing title in the U.S. App Store. The franchise recently launched cross-platform gameplay on Android through Google Play and currently ranks as the #15 grossing title on Google Play in the U.S. market. Additionally, Racing Rivals maintains strong appeal in major global markets.
"I am very excited to bring the current #1 grossing racing franchise in both the Apple and Google U.S. storefronts to Glu`s growing portfolio of IP," said Niccolo de Masi, Glu CEO. "In addition to more than 100 million installs lifetime, Cie Games will bring to Glu high quality studio talent and a profitable operating business. We anticipate the transaction being earnings accretive from its first quarter of consolidation."
De Masi continued, "Cie Games is a fully GaaS-driven studio with deep live-ops expertise and a rich content pipeline for Racing Rivals. Our expectation is that Racing Rivals is still early in the product lifecycle and with Glu`s studio resources and global distribution power, it will continue to evolve as a true MMO in the evergreen racing genre."
"The Cie Games acquisition is a continuation of Glu`s consolidation strategy commenced with the company`s transaction last quarter to bring the Diner Dash franchise to Glu," said de Masi. "We believe our global publishing, monetization, live operations, and distribution capabilities mean we are able to drive greater cumulative lifetime revenues from games such as Diner Dash and Racing Rivals than could be generated standalone."
Cie Games is an award-winning independent developer and publisher of top mobile and social games Racing Rivals and Car Town. Cie Games has entertained millions of players by leveraging its expertise in the racing game genre. Cie Games has positioned itself as a leader in creating compelling and authentic titles for racing enthusiasts by forging partnerships with the biggest automotive and entertainment brands in the world.
"With over 100 million total installs and top grossing positions on the App Store, Google Play and Facebook storefronts, we`ve had tremendous success with our focus on automotive and racing titles," said Justin Choi, Chairman of Cie Games. "We are just getting started with Racing Rivals and believe there are great things to come for Car Town. We expect that working with Glu will allow the Cie Games team to take each of these franchises to the next level. Cie Games also brings with it our real-time multiplayer gaming technology and expertise. The companies are truly a great fit and we`re really excited about their future together."
Glu anticipates that the next version of the popular Facebook game, Car Town, will launch on mobile in 2015.
Glu Mobile (GLUU) is a leading global developer and publisher of free-to-play games for smartphone and tablet devices. Glu is focused on creating compelling original IP games such as CONTRACT KILLER, DEER HUNTER, ETERNITY WARRIORS, and FRONTLINE COMMANDO on a wide range of platforms including iOS, Android, Windows Phone, and MAC OS. Glu`s unique technology platform enables its titles to be accessible to a broad audience of consumers globally. Founded in 2001, Glu is headquartered in San Francisco with a major office outside Seattle, and international locations in Canada, China, India, Japan, Korea, and Russia. Consumers can find high-quality entertainment wherever they see the `g` character logo or at www.glu.com. For live updates, please follow Glu via Twitter at www.twitter.com/glumobile or become a Glu fan at Facebook.com/glumobile.
CONTRACT KILLER, DEER HUNTER, DINER DASH, ETERNITY WARRIORS, FRONTLINE COMMANDO, GLU, GLU MOBILE and the `g` character logo are trademarks of Glu Mobile Inc.
Cautions Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" related to the business of Glu Mobile Inc., including statements regarding the expected benefits of Glu`s acquisition of Cie Games; the expected closing date of the acquisition; the expectation that Cie Games will bring to Glu high quality studio talent and a profitable operating business; the expectation that the transaction will be earnings accretive from its first quarter of consolidation; the expectation that Racing Rivals is still early in the product lifecycle and with Glu`s studio resources and global distribution power, will continue to evolve as a true MMO in the evergreen racing genre; our belief that our global publishing, monetization, live operations, and distribution capabilities mean we are able to drive greater cumulative lifetime revenues from games such as Diner Dash and Racing Rivals than could be generated standalone; Cie Games` belief that it is just getting started with Racing Rivals and that there are great things to come for Car Town; Cie Games` expectation that working with Glu will allow the Cie Games team to take each of the Racing Rivals and Car Town franchises to the next level; and our expectation that the next version of Car Town will launch on mobile in 2015. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Investors should consider important risk factors, which include: the risk that Glu will not be able to complete the acquisition of Cie Games; the risk that Glu will be unable to successfully integrate Cie Games and its employees and achieve expected synergies, the risk that Glu will have difficulty retaining key Cie Games employees; the risk that consumer demand for smartphones, tablets and next-generation platforms does not grow as significantly as we anticipate or that we will be unable to capitalize on any such growth; the risk that we do not realize a sufficient return on our investment with respect to our efforts to develop free-to-play games for smartphones, tablets and next-generation platforms, the risk that we will not be able to maintain our good relationships with Apple and Google; the risk that our development expenses for games for smartphones, tablets and next-generation platforms are greater than we anticipate or that we encounter development delays; and the risk that the mobile games market, particularly with respect to free-to-play gaming, is smaller than anticipated; and other risks detailed under the caption "Risk Factors" in our Form 10-Q filed with the Securities and Exchange Commission on May 12, 2014 and our other SEC filings. You can locate these reports through our website at http://www.glu.com/investors. We are under no obligation, and expressly disclaim any obligation, to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.
Glu Mobile Inc.
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Source: Glu Mobile Inc. via GlobeNewswire