Saudi-backed consortium to acquire EA for $55 billion; all cash

Electronic Arts (EA) has entered into an agreement to be acquired by a consortium including Saudi Arabia's Public Investment Fund (PIF), Silver Lake, and Affinity Partners in a $55 billion all-cash transaction.

The deal represents the largest all-cash private equity acquisition in history. Under the agreement, EA stockholders will receive $210 per share, a 25% premium over the company's recent unaffected stock price.

The acquisition will take EA private, with the company's stock expected to be delisted once the transaction closes in early 2027. The investor group brings together PIF, which already owns 9.9% of EA, with private equity firms Silver Lake and Affinity Partners. The consortium will provide $36 billion in equity and secure $20 billion in debt financing from JPMorgan Chase.

EA CEO Andrew Wilson will continue to lead the company, which will maintain its headquarters in Redwood City, California.

The deal requires regulatory approval and stockholder consent before finalisation.

EA, known for franchises including EA Sports FC, Madden NFL, and The Sims, reported approximately $7.5 billion in revenue for its last fiscal year.