The world's largest third party publisher, Electronic Arts has announced the acquisition of independent development studios Bioware and Pandemic. The Redwood City, California-based publisher acquired VG Holding, the parent company of the two studios from Elevation Partners. Current EA chief executive John Riccitiello originally founded Elevation Partner, after leaving EA in 2004 for three years.

Today's deal is worth 775 million USD. EA is paying 620 million USD in cash to the shareholders of VG Holding, while certain employees of the company will receive an additional 155 million in equity.
Organization-wise, Bioware and Pandemic will from now on operate under the EA Games label. EA will also become the new owner of such acclaimed IPs as Jade Empire, Mass Effect, Dragon Age, and Mercenaries. The deal does not cover the rights to IP based on licensed content, such as Star Wars: Knights of the Old Republic. In addition to already announced titles like Mass Effect, the two studios are apparently working on several other yet to be announced projects for Wii and DS.

• GamesIndustry.biz
• GameSpot