Glu offers $36M to acquire Superscape

Shares of Glu Mobile Inc. got a lift after the company offered to buy U.K.-based rival Superscape Group plc for $36 million.
Superscape has gained traction with a portfolio of both 2-D and 3-D mobile games, and claims 135 employees in San Clemente, Calif., and the British town of Fleet. The company publishes both original IP and branded titles and produces white-label games for Verizon Wireless.
Glu consistently ranks among the top mobile game publishers in the United States, but the company has struggled since going public last March. The startup netted $84 million in the IPO and saw shares climb to $14.80 in the following weeks, but the stock tumbled later in the year as Glu failed to meet analysts’ expectations and, later, issued disappointing fourth-quarter guidance.
But the game maker is moving aggressively to make a run at EA Mobile, which continues to dominate the space. Glu recently signaled its intentions to step up its Chinese operations, saying it will spend as much as $40 million to acquire Beijing Zhangzhong MIG Information Technology Co. Ltd.
The latest offer marks a 29% premium to Superscape’s Tuesday closing price of $15.17, and Glu executives say they have commitments to tender shares from 34% of Superscape shareholders.
“I am very pleased that we have been able to reach agreement on the terms of this transaction, which I believe is the right strategic outcome for Superscape, and offering certainty and value to our shareholders,” Superscape Chairman Larry Quinn said. “I am confident that Superscape will make a significant contribution to the future of the combined business.”