Japan's DeNA to pay up $403 million for game firm ngmoco

TOKYO (Reuters) - Japan’s DeNA Co will buy ngmoco Inc, a U.S. developer of games for Apple Inc’s iPhone and iPad for up to $403 million, saying the combination will create the world’s largest mobile social games platform company.

DeNA, which operates the popular mobile-only social game site “Mobage-town,” with 20 million users in Japan, has been widening its game offerings for different types of devices such as PCs and mobile phones, as well as expanding aggressively into the U.S. market.

In the last month alone, it has also bought U.S. game developer Gameview Studios and taken a stake in another U.S. game developer Astro Ape Studios.

In addition to its offering for Apple products, California-based ngmoco is developing games for Google Inc’s Android-base smartphones.

DeNA said it would pay $303 million in its shares, stock options and cash in November to buy ngmoco and would pay up to an additional $100 million, with that part of the deal dependent on ngmoco’s earnings for 2011.

It will issue new shares and stock options for the acquisition, which may dilute the value of its existing shares by up to 5.4 percent, the company said.

Shares of DeNA dropped 1.6 percent to 2,373 yen before the announcement. The benchmark Nikkei average was down 2.1 percent.

Reporting by Sachi Izumi; Editing by Edwina Gibbs