Electronic Arts announced on Monday that it has reached an agreement to acquire UK-based Codemasters in a deal worth $1.2 billion. The acquisition is expected to close in the first quarter of 2021.
Under the deal, 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.
Codemasters chairman Gerhard Florin said that 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,” Gerhard Florin said in a statement.
Andrew Wilson, Electronic Arts CEO, said: “Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment.
“With the full leverage of EA’s technology, platform expertise, and global reach, this combination will allow us to grow our existing franchises and deliver more industry-defining racing experiences to a global fan base.”
When the deal is completed, the deal will add a host of racing IPs to EA’s stable, including Formula One, Dirt, Grid and Project Cars.
According to the statement, Frank Sagnier, Chief Executive Officer of Codemasters, and Rashid Varachia, Chief Financial Officer of Codemasters, along with the senior executive management team of Codemasters will remain in the same roles and will continue to lead the Codemasters business within EA’s organization.