Activision Blizzard announced it will pay $5.9 billion to acquire Dublin–based King Digital Entertainment. The boards of both companies have approved the transaction. The agreement adds a top mobile publisher to the arsenal of the biggest U.S. video-game maker, positioning Activision to capitalize on growing smartphone-based play.

Activision said the cash consideration payable under the terms of the acquisition will be funded from approximately $3.6 billion of offshore cash on the balance sheet of the Activision Blizzard Group and by an incremental term loan committed by Bank of America Merrill Lynch and Goldman Sachs Bank USA, as incremental lenders, under Activision Blizzard’s existing credit agreement in the amount of $2.3 billion.

The King board of directors, who have been so advised by J.P. Morgan as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable. In providing its advice to the King Directors, J.P. Morgan has taken into account the commercial assessments of the King Directors.