Blue Lava founder Henk Rogers has been employed to manage Jamdat’s wireless Tetris franchise, while his fellow workers will become part of Jamdat which will maintain a studio in Honolulu.
The purchase agreement consists of $60m in cash and 4.05 million shares of Jamdat stock at closing. There is also a deferred payment of $13.7m in cash or stock.
Jamdat said it predicts Q1 2005 revenues to be $15m, an increase of 30% since the fourth quarter 2004 and above its prior guidance of $14.1m. The purchase of Blue Lava Wireless and Tetris rights is expected to add 10 cents to GAAP earnings per share in 2005, while Mitch Lasky, CEO of Jamdat, is hopeful of an increase in market share in Europe and Asia.
It is the second acquisition of the year for Jamdat, who had previously bought mobile game developer Downtown Wireless.
