San Mateo, California-based video games developer Electronic Arts Inc is to acquire education software specialist Broderbund Software Inc for about $400m in shares – although the price will have changed after the market opened yesterday because shares in both companies jumped, with Electronic Arts $4.00 to $29.50 and Broderbund adding $5.00 to $47.00 – at which price the deal appears to be worth $460m. Under the share exchange agreement, Electronic Arts is offering 1.6 of its own shares for each Broderbund held, giving Broderbund shareholders about 25% of the enlarged company. Broderbund is to become a wholly-owned subsidiary of Electronic Arts, with operations continuing in Novato, California. The merger is expected to be complete by the end of May.
