ELECTRONIC ARTS COMPLETES ACQUISITION OF MAXIS, INC.
Maxis Shareholders Vote To Approve Deal
Under terms of the sale, each outstanding share of Maxis common stock has been converted into .3644 shares of Electronic Arts common stock. Cash will be paid in lieu of fractional shares. The transaction is valued at approximately $125 million. Exchanged in the transaction will be 4.1 million newly-issued shares of Electronic Arts common stock 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. Maxis shares ceased trading on the Nasdaq exchange at the close of market on Friday, July 25, 1997.
Luc Barthelet, who previously was vice president and executive in charge of production for EA San Mateo studios, joins the Maxis studio as vice president and general manager. Mr. Barthelet is a nine-year EA employee who prior to joining Electronic Arts was founder and director of product development at Version Soft, a privately held company acquired by Electronic Arts in 1988. Sam Poole, formerly Maxis President and CEO, will be leaving the company to pursue new opportunities.
Joseph Keene, formerly chief administrative officer for EA North American Studios, will assume the role of Maxis studio vice president and chief operating officer. Maxis co-founder, Jeff Braun, will join Electronic Arts as senior vice president, studio development. Will Wright, also a co-founder of Maxis will remain a vice president at Maxis and continue to be a key member of the development team. Fred Gerson will remain as vice president and CFO of the Maxis studio during the transition period as the companies combine their two financial operations.
Larry Probst, Electronic Arts' Chairman and CEO, said, "Maxis is a leading developer of entertainment and learning software for the personal computer. Its premier title, SimCity, is one of the industry's most valuable franchises. Adding Maxis to our EA SPORTS, ORIGIN, Jane's Combat Simulations and Bullfrog brands positions Electronic Arts to be the leading publisher of entertainment software on the personal computer. We believe EA's worldwide sales and distribution organization can significantly expand the market for the Sim family of products."
Mr. Probst continued, "We are pleased that Maxis co-founders Jeff Braun and Will Wright will remain with the combined company and will continue to play key roles in creating new, innovative games and in managing the creative talent required to develop industry leading products. I am equally pleased to announce that EA vice president Luc Barthelet, himself a software entrepreneur before joining Electronic Arts, will be moving to Maxis as vice president and general manager. We have a great team and believe our goal of being the top entertainment software publisher for the PC is well within our reach."
Maxis, founded in 1987, is best
known for SimCity, SimCity 2000 and other members of the Sim family. Most of
the company's 240 employees are located at 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 US.
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. The Company has North American development
operations in San Mateo, California; Baltimore, Maryland; Austin, Texas;
Seattle, Washington; and Vancouver, British Columbia.
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