EA To Acquire Titanfall Developer Respawn Entertainment

In a press release today, publisher/developer conglomerate Electronic Arts announced an agreement to acquire independent game developer Respawn Entertainment, the studio behind the critically-acclaimed Titanfall franchise.

The acquisition builds on a successful publishing partnership between Respawn and EA, with multiple projects currently in development — a new title in the Titanfall franchise, a game set in the Star Wars universe and a VR gaming experience.

Respawn will join EA’s Worldwide Studios organization, a global creative collective of leading game development studios bringing to life an unmatched portfolio of top games and services across all major platforms.

“We’ve seen firsthand the world-class caliber of Respawn as a development studio with incredible vision, deep talent and an inspiring creative mindset,” said EA CEO Andrew Wilson. “Our longtime partnership is grounded in a shared desire to push the boundaries and deliver extraordinary and innovative new experiences for players around the world. Together, we’ve brought this to life in the Titanfall franchise, and now with the Respawn team joining EA, we have exciting plans to accomplish even more amazing things in the future.”

As detailed in the press release:

“Under the agreement, EA will pay 1 million in cash, and up to 4 million in long-term equity in the form of restricted stock units to employees, which will vest over four years. In addition, EA may be required to pay additional variable cash consideration that is contingent upon achievement of certain performance milestones, relating to the development of future titles, through the end of calendar 2022. The additional consideration is limited to a maximum of 0 million. The transaction is expected to close by the end of the calendar 2017 or soon thereafter, subject to regulatory approvals and other customary closing conditions. The acquisition is expected to be neutral to EA’s net income in fiscal years 2018 and 2019.”

Earlier this year, EA confirmed the closure of its Visceral Studios, as they plan to revamp the Star Wars game that that particular studio was working on.

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