Redwood City: Computer and video game publisher Electronic Arts Inc. (EA) has announced that it had agreed to acquire the assets of Hands-On Mobile Korea, a leading Korean mobile developer and publisher, who is best known for its mobile role-playing game, Heroes Lore.

Hands-On Mobile, Inc. is a leading developer of connected games and applications, with operations on four continents. The company develops and distributes mobile content to over 200 of the world's leading operators in 60 countries. The company's diverse catalogue includes games, applications and personalization suites from top brands such as Activision, Billboard, CBS, LEGO, Marvel, NBA, NBC Universal, Paramount Pictures, and World Poker Tour.

Once the acquisition is complete, the 'former' Hands-On Mobile Korea team will become EA Mobile Korea, and will play a strategic role in the EA Mobile Asia development and publishing growth plans. The acquisition is subject to customary closing conditions and is expected to be completed by the end of this fiscal quarter.

The acquisition comes at a time when EA is in the midst of contesting a $2 billion tender offer for Take-Two Interactive Software Inc. EA says acquiring Hands-On Mobile Korea is a major milestone in expanding its mobile business in Asia. Hands-On Mobile Korea is a subsidiary of US-based parent company Hands-On Mobile.

''This acquisition is a major milestone in growing our mobile business in Asia,'' said Barry Cottle, Senior Vice President and General Manager EA Mobile.

''Hands-On Mobile Korea brings us a great leadership team, proven studio talent, and outstanding carrier and OEM handset manufacturer relationships.''

EA extended its deadline on its $2 billion tender offer for smaller rival Take-Two Interactive Software Inc. on 19 May, after it had expired at midnight. The new deadline is 16 June.

In a filing with the Securities and Exchange Commission (SEC), EA had disclosed that a consortium comprising Morgan Stanley, BNP Paribas, Bank of Nova Scotia and KeyBank National Association had consorted to provide up to $1 billion to help fund the takeover. This lead to analyst expectations of a revised, higher bid at around $30 per share.

Take-Two management, echoing the sentiment of Jerry Yang in the Microsoft – Yahoo! Drama of past months, had said EA's offer undervalues the company. Take-Two is best known for its top selling "Grand Theft Auto" series of games, and its "Midnight Club," "BioShock" and sports games which form the mainstay of EA's competition in the category.

The extension of EA's deadline will allow the Federal Trade Commission's (FTC) antitrust review of the proposed deal to continue, though its bid remains unchanged at $25.74 per share. ''Our offer is still subject to conditions that include regulatory approval. As stated earlier, we retain the right to terminate the offer if the conditions are not satisfied," said Owen Mahoney, senior vice president of EA corporate development.

''We are excited about joining EA Mobile and its mission to bring to market some of the world's most innovative, cutting-edge and commercially proven mobile games and applications,'' said Gilbert Kim, CEO of Hands-On Mobile Korea, who will become head of EA Mobile, Korea Division.

''Korea is one of the most ubiquitous entertainment markets in the world, and we look forward to continually pushing the edge with our partners here to enrich the mobile user experience across all aspects of daily life.''

After the acquisition, Gilbert Kim will continue as head of the EA Mobile, Korea division, and the studio will remain in Korea with growth planned for both the development and publishing teams, They will work within the management structure of the EA Mobile Asia Publishing organization. Financial terms of the acquisition were not disclosed, and EA does not expect the acquisition to impact the company's fiscal year 2009 financial guidance.