REDWOOD CITY, Calif. — Electronic Arts has completed its $55 billion acquisition by a consortium led by Saudi Arabia’s Public Investment Fund, taking the video game publisher private and ending its run as a publicly traded company, according to the company and reporting on the transaction.
The consortium includes PIF, U.S. private-equity firm Silver Lake and Affinity Partners, an investment firm founded by Jared Kushner. Under the agreement announced last year, shareholders were to receive $210 in cash per share, valuing the transaction at about $55 billion.
The deal closed on Aug. 4 after the consortium secured the required regulatory approvals. The European Commission cleared the acquisition under its merger rules in July, concluding that it would not raise competition concerns. The transaction also received clearance under the European Union's Foreign Subsidies Regulation, removing a final major regulatory hurdle.
The acquisition was structured with about $36 billion of equity financing and $20 billion of debt financing, according to EA's original transaction announcement. JPMorgan Chase committed the debt financing, with $18 billion expected to be funded at closing. PIF agreed to roll over its existing 9.9% stake in EA as part of the transaction.
PIF is expected to hold the largest ownership position in the new private company. Reporting ahead of the closing indicated that PIF would own about 93.4% of EA, with Silver Lake and Affinity Partners holding the remainder.
EA's portfolio includes major franchises such as Battlefield, EA Sports FC, Madden NFL, The Sims and Apex Legends. Chief Executive Andrew Wilson remains in charge as the company begins operating under private ownership.
The transaction represents a major expansion of Saudi Arabia's investment footprint in the global gaming industry. PIF has previously built exposure to gaming through investments and acquisitions, including its ownership interests in gaming and esports businesses.
EA's board approved the transaction after concluding that the offer provided immediate cash value to shareholders. The company had said the acquisition would allow it to pursue its long-term strategy without the same pressures associated with being publicly traded.
The completed transaction also marks a significant change in EA's corporate structure: its common stock is no longer listed on public markets. The company will continue operating its game development and publishing businesses under the new ownership, with Wilson remaining chief executive.
