Glu Mobile Inc. (NASDAQ: GLUU) stock shot up on Tuesday after it was announced that the firm would be acquired by Electronic Arts Inc. (NASDAQ: EA). The deal is expected to close in the June quarter, but it is subject to regulatory approval and customary closing conditions.

Under the terms of the agreement, EA will acquire Glu for $2.1 billion in enterprise value. Glu stockholders will receive $12.50 in cash for each share of Glu stock. The deal represents an equity value of $2.4 billion and a total enterprise value of $2.1 billion, including Glu’s net cash of $364 million.

As it stands, Glu shareholders are looking to receive a premium of about 36% from Friday’s closing price of $9.19. They also are receiving premiums of 33.0% and 42.9%, compared to the 50-day and 200-day moving averages of $9.40 and $8.75, respectively.

Upon closing, the acquisition will be immediately accretive to Electronic Arts’ total net bookings, and is expected to grow underlying profitability beginning in its first year. Management expects this immediately will add significant scale to EA’s mobile games business.

Again, management noted that the combined organization will build on EA’s network of 430 million players, including more than 100 million monthly active players in mobile, and expand to new audiences and demographics all over the world.

Excluding Tuesday’s move, Glu Mobile stock had performed more or less in line with the broad markets with a gain of about 4% year to date. In the past 52 weeks, the stock was up closer to 28%.

Electronic Arts stock traded up about 3% on Tuesday to $146.34, in a 52-week range of $85.69 to $150.30. The consensus price target is $156.32.

Glu Mobile stock was up about 34% to $12.59. The 52-week range is $3.98 to $12.64, and the consensus price target is $11.70.

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