Ifone was set up five years ago by former Ocean and Atari boss David Ward. It was projecting turnover this year of $25m, having hit $11m last year.
Successes include current hit Sonic, plus Monopoly and Tetris.
A 45-strong team in Manchester will now consolidate with Glu's UK office in London although it is unclear as yet whether the Ifone name will continue.
The two companies will now become a global force ready to compete with the other consolidating powers in the fast-growing mobile entertainment sector.