Earlier this year EA announced plans to purchase Respawn Entertainment, developers of the Titanfall series, expecting the deal to close by the end of calendar year 2017. Today they announced that the deal has closed ahead of schedule and EA now fully own Respawn Entertainment. The deal was officially closed on December 1st with a filing with the Securities and Exchange Commision dated December 4th.
The terms of EA’s purchase of Respawn Entertainment haven’t changed from what was announced in November this year. EA have paid $151 million in cash, and will pay up to $164 million in equity through stock units for employees over the next for years. EA has also confirmed that they will pay an additional $140 million to the developer if they hit specific performance milestones for games they’re creating through to 2022.
Vince Zampella, CEO of Respawn Entertainment, has said in a public letter on the company website that there will be no layoffs as a result of this deal and he will remain in position as CEO. He added that the decision to go with EA wasn’t necessary but made sense for plans they have for the company’s future. He also said that EA doesn’t interfere with their business culture and has in fact been a great partner for the Star Wars game they’re working on and the Titanfall series.
Zampella also writes that EA will provide Respawn Entertainment with the resources, expertise, and access to new technologies that will help them improve as a developer. While they’ll be working closely with EA leadership they will still be maintaining their creative freedom, something Zampella is very keen to point out about this process.
Respawn Entertainment was formed in 2010 by Vince Zampella and Jason West, ex-Call of Duty developers. The company has remained independent until now and has largely worked with EA on all their games since inception. The developer is currently working on a new Titanfall game, a Star Wars title and a new VR game.
Titanfall 2 has been a sleeper hit of 2017 with what many say is the best campaign they’ve ever experienced in a first person shooter title. With a new game in the series confirmed and the infrastructure EA provides Titanfall 3 could be Game of the Year when it releases.