Electronic Arts to acquire Codemasters
Codemasters Group Holdings accepts bid of US$1.2 billion
Electronic Arts Inc. has announced that it has reached an agreement with the Board of Codemasters for the recommended acquisition of Codemasters, the UK-based game developer and publisher.
In the transaction, Codemasters' shareholders will be entitled to receive 604 pence (approximately US$7.98) in cash for each ordinary share of Codemasters with an implied enterprise value of US$1.2 billion. The acquisition is anticipated to be completed in the first quarter of calendar 2021.
The news comes just a couple of weeks after another publisher, Take-Two, offered a similar buyout bid - but with a lower $800 million offer.
“Electronic Arts and Codemasters have a shared ambition to lead the video game racing category. We feel this union would provide an exciting and prosperous future for Codemasters, allowing our teams to create, launch and service bigger and better games to an extremely passionate audience,” said Gerhard Florin, the Chairman of Codemasters.
Electronic Arts believes the combination of EA and Codemasters will enable further growth and success for Codemasters and EA’s popular and innovative racing franchises.
Codemasters brings with them racing franchises such as Formula One, DiRT, DiRT Rally, Grid and Project Cars. EA believes it can help accelerate Codemasters’ performance by leveraging EA’s deep expertise in live services operations, game analytics and technology. In addition, EA’s central services teams across development technology, art & motion capture, quality verification, compliance, and localization will all be resources available to Codemasters.