Printer Friendly

Electronic Arts and Maxis Inc. announce definitive agreement to merge; transaction valued at approximately $125 million.

SAN MATEO, Calif.--(BUSINESS WIRE)-- June 4, 1997--Electronic Arts(TM) (NASDAQ:ERTS) and Maxis(R) Inc. (NASDAQ:MXIS) today announced the two companies have signed a definitive agreement to merge.

The merger is expected to be completed by the end of August 1997 and is subject to approval by the stockholders of Maxis and other customary conditions.

The holders of Maxis common stock will receive .3644 shares of Electronic Arts' common stock for each share of Maxis common stock in a transaction valued at approximately $125 million. Approximately 4.1 million shares of Electronic Arts' common stock will be exchanged for all outstanding Maxis common stock, representing approximately seven percent of the combined company on a pro forma basis.

The transaction will be effected on a tax-free basis and will be accounted for as a pooling of interests.

Electronic Arts (EA) is a leading third party developer and publisher of interactive entertainment software for advanced video game systems and personal computers. Maxis is a leading developer of entertainment and learning software for personal computers.

Electronic Arts' Chairman and CEO Larry Probst said, "Maxis' talented team has created a highly-successful franchise for its 'Sim' family of entertainment products. Its flagship title, SimCity(R), is one of the most valuable franchises in our industry. We believe the addition of the Sim product line will help us achieve our goal to be the number one publisher of entertainment software for the PC."

Known worldwide for its innovative and easy-to-use products, Maxis has sold over seven million units of the Sim line.

"This merger unifies two of the best names in consumer software and paves the way for many exciting opportunities," said Sam Poole, Maxis' president and CEO. "In particular, this will allow Maxis to have access to EA's worldwide distribution organization, one of the strongest and most effective in the industry. This partnership enables us to expand our critical mass and resources to take our business to the next level."

Jeff Braun, Maxis' chairman and co-founder who holds 28 percent of the outstanding shares, has signed an agreement to vote his shares in favor of the merger. Mr. Braun said, "This is an outstanding business combination. The two companies have many synergies and cultural similarities. Partnering with EA will open new retail opportunities and provide additional financial resources to continue to create ground-breaking software."

Maxis, founded in 1987, is best known for SimCity, SimCity 2000r and other members of the Sim family. Most of the company's 230-plus employees are located in its Walnut Creek, California, headquarters. Additional development offices are located in San Mateo, California, and Austin, Texas. Maxis has marketing and sales offices in London, Tokyo, and throughout the U.S. More information on Maxis and its entire software line is available on the Internet at .

Electronic Arts, headquartered in San Mateo, California, is a leading interactive entertainment software company. Founded in 1982, EA posted revenues of $625 million for fiscal 1997. The Company develops, publishes and distributes software worldwide for personal computers and video game systems. EA has international subsidiaries in Australia, Canada, France, Germany, Japan, Singapore, South Africa, Spain, Sweden, and the United Kingdom, and North American development operations in San Mateo, California; Baltimore, Maryland; Austin, Texas; Seattle, Washington; and Vancouver, British Columbia More information about EA's products and full text of press releases can be found on the Internet at . -0-

Electronic Arts is a registered trademark of Electronic Arts. Maxis, the Sim and Maxis logos and names of the products offered by Maxis are trademarks or registered trademarks of Maxis Inc. All other trademarks are the property of their respective owners.

CONTACT: Electronic Arts

Pat Becker, 415/513-7523
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Jun 4, 1997
Previous Article:Yamaichi Securities Rating Lowered to BBB by S&P.
Next Article:UStel Inc. signs letter of intent to acquire Arcada Communications.

Related Articles
Maxis Releases Streets of SimCity for Windows 95; New 3-D Driving Game Lets Players Cruise Through Dozens of Action-Packed Cities Including Their Own...
Electronic Arts Acquires Software Developer Tiburon Entertainment; Leading Sports Game Developer Becomes Wholly-Owned Subsidiary.
Electronic Arts Acquires ABC Software to Establish Direct Sales Organizations in Switzerland and Austria.
Spelling Entertainment Agrees to Sell Development Assets of Virgin Interactive Entertainment, Including Westwood Studios Inc., to Electronic Arts for...
Teradyne to Acquire GenRad.
Riverwood to merge with Graphic Packaging.
ScanSoft, Nuance to merge.
ClientLogic and SITEL to merge.
PASW, Inc. Enters Into Non-Binding Term Sheet To Merge With VirnetX Inc.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters