Glu Mobile Buys Chinese Mobile Games Developer

Mobile games developer, Glu Mobile has agreed to acquire Beijing Zhangzhong MIG Information Technology ("MIG"), a developer and publisher of mobile games in China. The acquisition, which remains subject to customary closing conditions, accelerates the company's presence in China and deepens Glu's relationship with China Mobile.

This acquisition makes Glu the first top-tier global mobile games publisher to acquire a developer and publisher of mobile games in China.

Under the terms of the transaction, which the parties anticipate will close in approximately three weeks, MIG's shareholders will receive approximately $14.7 million in cash. Additional payments of up to $25 million in cash and stock are contingent upon the achievement by MIG of certain financial milestones during 2008, with a portion of the additional payments subject to continued employment of the principal officers of MIG.

"We believe MIG is the leading developer and publisher of mobile games in China. The acquisition allows us to strengthen our presence in the region and supports our goal to be the world's leading global publisher of mobile games," said Greg Ballard, chief executive officer and president, Glu Mobile. "The combination of MIG's strong portfolio, exceptional management team and demonstrated market leadership complements our existing operation in the region and positions Glu to be the leader in this important emerging market."

As part of the acquisition, Wang Bin, chief executive officer, MIG, will join Glu as General Manager focused on China and Glu will add MIG's approximately 80 employees to its worldwide team.

Rocky Pimentel, executive vice president and chief financial officer, Glu Mobile, added, "We expect a modest revenue contribution from this acquisition in 2008. Going forward, we anticipate that China will be an important market both for mobile games and for Glu. We are delighted to be partnering with MIG and its talented management team and employees."

Posted to the site on 29th November 2007