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Electronic Arts said that it would purchase British video game developer and publisher Codemasters for around $1.2 billion!
Earlier, Take-Two Interactive Software had announced an agreement with the Board of Directors of Codemasters for the latter’s acquisition. However, the deal was trumped by the Electronic Arts offer.
Electronic Arts appears to have moved quickly to proclaim the acquisition, said to be a result of increased video game sales over the past few months. Take-Two has, since the announcement, said it is “considering its position.”
Electronic Arts buying Codemasters in deal
Founded in October 1986, Codemasters is one of the oldest British game studios and was in 2005 named the “best independent video game developer” by trade magazine Develop.
Codemasters is best known for creating various racing games such as Dirt, Grid, and the Formula 1 series.
Electronic Arts owns Need for Speed, which means that the deal allows the company to gain further control of the racing game market. EA’s Chief Executive Officer, Andrew Wilson, released the following statement about the move:
“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,”
The deal has come as a result of financial advice given to Electronic Arts by the UBS Investment Bank. On the other hand, Jefferies is the financial advisor of Codemasters.
Since the announcement, Codemasters’ shares have surged by more than 18%, with its total valuation going past the 604 pence per share offered to its shareholder by Electronic Arts.
While further details about the deal will be released over the next few days, it is an interesting prospect for fans of racing games. It also allows Codemasters to use superior resources and networks for future projects, intending to create “industry-defining racing experiences.”
