Mobile gaming gaint Glu Mobile has raised financial expectations as it closes its acquisition of competitor Superscape.
As of March 20, Glu Mobile has obtained 92.97 percent of all Superscape Group plc shares in the market as part of its tender offer for the company. Glu Mobile anticipates an increase of $12 million in next year's revenue thanks to the Superscape deal, an additional cent on top of its earnings-per-share number. In February, expected earnings for 2008 were between $83.0 million and $87.0 million, so the acquisition could raise corporate revenues to a little under $100 million.
Greg Ballard, president and chief executive officer, Glu, commented, "We're excited to be joining forces with Superscape, a pioneer in the mobile games industry. Superscape's strong heritage in 3D technology, high-quality original titles and innovative white label programs complement our existing world-class operations. This acquisition is an important achievement in becoming the leading mobile games publisher in the world."
Rocky Pimentel, chief financial officer, Glu, added, "We expect Superscape will have a positive impact on our financial results. While the integration of Superscape will continue through most of this year, we currently anticipate that the acquisition will be neutral to earnings until the fourth quarter, at which time it will become accretive. Accordingly, we are raising our full year guidance."
Shares rose 1.23 percent Tuesday to $4.94.