Electronic Arts to go private in record $55bn buyout led by Saudi, Kushner & Silver Lake

"The deal, announced on Monday, will see EA delisted from the Nasdaq and become a privately held company under a consortium led by Silver Lake, Saudi Arabia's Public Investment Fund (PIF), and Jared Kushner's Affinity Partners. Under the terms of the agreement, EA shareholders will receive $210 per share in cash, a premium of roughly 25% over the company's recent trading price. The consortium will fund the acquisition via a mix of equity (around $36 billion) and debt financing of $20 billion, led by JPMorgan."

"If completed, the deal would eclipse previous records, becoming the largest leveraged buyout ever, as well as one of the largest all-cash transactions in the tech/gaming space. The deal is contingent on regulatory and shareholder approvals, particularly given the involvement of foreign capital via Saudi Arabia's sovereign wealth fund. Critics may cite national security and control issues given the strategic importance of gaming and tech. The heavy debt load (approximately $20 billion) poses financial risk."

Electronic Arts will leave public markets in a $55 billion leveraged buyout led by Silver Lake, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners. Shareholders will receive $210 per share in cash, about a 25% premium. The purchase will be financed with roughly $36 billion of equity and $20 billion of debt led by JPMorgan, with PIF rolling over its 9.9% stake. If completed, the transaction would be the largest leveraged buyout and a major all-cash tech deal. The deal requires regulatory and shareholder approvals, raises national security concerns, and carries substantial debt-related financial risk.

Read at Business Matters