EA has been looking at Popcap for a while now and it has now announced that it will acquire Popcap in a deal that is worth some very big money. EA is plunking down $650 million in cash and then giving up another $100 million in shares of EA common stock to complete the deal. Popcap sellers are also entitled to additional variable cash consideration depending on non-GAAP earnings through December 2013, which is EA’s fiscal Q3.

If the upper end of the performance targets are met EA could end up paying out another $343 million in total. Other than the fees to purchase Popcap, EA will also spend another $50 million in equity retention awards to Popcap employees that will be granted over the next four years. EA hopes to complete the transaction in August.

The closing of the deal is subject to regulatory approvals and other conditions though. EA expects that Popcap will pull its weight pretty fast. The gaming giant has changed non-GAAP revenue guidance to between $3,800 million and $4,025 million to account for Popcap’s inclusion in FY2012. In Q2 of fiscal 2012, the non-GAAP loss due to the acquisition of Popcap will be in the area of $0.15 to $0.05 per share.

[via EA (PDF)]