NEW YORK (CNNfn) - Hasbro Inc. said Wednesday it has agreed to acquire computer-game maker MicroProse Inc. for $70 million in cash and debt.
Under terms of the deal, Hasbro will purchase all MicroProse common stock for $6 a share, a 32 percent premium over MicroProse's closing price Tuesday of 4-9/16.
MicroProse will merge with Hasbro Interactive, Hasbro's CD-ROM game subsidiary. MicroProse's game titles include Civilization, the Falcon flight-simulator series and StarTrek the Next Generation.
'Falcon' to fly with Hasbro
"The acquisition of MicroProse will significantly enhance Hasbro Interactive in three key strategic growth areas: brands and content, R&D assets and European distribution," said Tom Dusenberry, Hasbro Interactive president.
"We will now compete in virtually all major PC game categories. We also look forward to expanding many of MicroProse's games to multiple hardware platforms."
Hasbro said the deal will add to its earnings in 1999. The company will take a one-time charge for research and development.
Hasbro (HAS) shares closed at 35-1/4 in Tuesday trading. MicroProse (MPRS) shares closed at 4-9/16.