Codemasters has reached a formal agreement with Take-Two, regarding the terms of the company’s sale, in a cash and stock offering that values the racing game company at around £ 750 million ($ 980 million).
In a note sent to investors, the two companies said they expect the acquisition to be completed in the first quarter of 2021, subject to shareholder approval at an upcoming general meeting.
Following the completion of the agreement, Codemasters will work within Take-Two’s 2K label under the leadership of CEO Frank Sagnier, CFO Rashid Varachia and the rest of his senior management team.
Codemasters is the publisher of games such as Dirt, F1, Grid and OnRush. The company recently secured the rights to the FIA World Rally Championship (WRC) and in 2019 acquired Slightly Mad, the developer of the Project Cars and Fast & Furious Crossroads series.
Take-Two is the owner of the 2K and Rockstar labels, as well as his sports brand 2K Sports, under which he publishes NBA 2K and PGA 2K.
In a statement, Take-Two CEO Strauss Zelnick said he believes Codemasters’ racing game line-up will fit well with their roster of sports games.
” We are extremely pleased to announce the Codemasters transaction,” he said.
” Codemasters is known for creating some of the most loved and successful racing franchises in our industry and we believe their offerings will be highly complementary to our sports portfolio and further enhance our organization’s long-term growth .”
“We also look forward to welcoming Codemasters senior management and development teams to our Take-Two family and sharing our vision of delivering the highest quality entertainment experiences and aiming to be the most innovative, creative, and efficient in our sector. “
Commenting on the acquisition, Codemasters president Gerhard Florin said the deal will lead the company to long-term success.
” With a leadership position in sports games, Codemasters ‘board of directors strongly believes that the company will benefit from Take-Two’s broad capabilities that will help propel Codemasters ‘ long-term success,” he said.