Mobile games developer Glu Mobile announced plans to buy British rival gaming company Superscape for about $36 million. Superscape, with headquarters in both California and Britain, has distribution deals with U.S. carriers Verizon Wireless and Alltel Wireless. Glu says the acquisition will help it compete more closely with market leader Electronic Arts.
Superscape's board already has approved the deal, but in accordance with British rules it is structured as a tender offer. Glu said it has offered to buy the shares for about 20 cents each, a premium of 29% to Superscape's Tuesday closing price.
"I am very pleased that we have been able to reach agreement on the terms of this transaction," said Larry Quinn, chairman of Superscape, in statement. "I believe this is the right strategic outcome for Superscape, offering certainty and value to our shareholders. I am confident that Superscape will make a significant contribution to the future of the combined business."