Electronic Arts to Acquire Codemasters (LON: CDM) to Enhance Racing Games Offering

2 min read | December 15, 2020 08:11 PM AEDT | By Kunal Sawhney

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Electronic Arts to Acquire Codemasters (LON: CDM) to Enhance Racing Games Offering

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Summary

Electronic Arts Inc has reached a deal with the British video game developer Codemasters Group for its acquisition

The deal will see Codemasters shareholders receiving $7.98 a share, which takes the valuation of company at about $1.2 billion

The acquisition will enhance the growth prospects of the EA’s popular racing franchises

US-based Electronic Arts Inc. (NASDAQ:EA) said it has reached a deal with the management of the British video game developer Codemasters Group (LON:CDM) for its acquisition. In a press release, Electronic Arts (EA) said that the deal would see the shareholders of Codemasters receiving $7.98 a share, which takes the valuation of the British video game developer at about $1.2 billion.

The acquisition will bring the expertise of the EA and Codemasters on one platform and will enhance the growth prospects of the EA’s popular racing franchises. Plans are afoot to bring experts from Codemasters’ highly acclaimed sports and racing franchises DiRT Rally, Formula One, Grid, DiRT and Project Cars.

EA added that the acquisition would further enhance the company’s game analytics, service operations and technology apart from delivering unique content.

Codemasters CEO Frank Sagnier, CFO and other senior management officials will continue to lead the business operations of the company under the EA’s structure once the acquisition is completed in the first quarter of next year.

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Commenting on the acquisition, Gerhard Florin, Chairman of Codemasters, said the company’s management sees the deal as a positive step towards ahead, which will help the company with more knowledge, expertise and resources from the EA and help them in developing better games in the future.

Also read: How is the takeover of Codemasters Group Holdings by the gaming giant Take-Two getting framed?

Meanwhile, Andrew Wilson, CEO of Electronic Arts, said the video game racing category is growing, and the acquisition of Codemasters provides a unique opportunity to create innovative games for the audiences. The EA’s technology, along with Codemasters' talent and expertise enables the company to deliver the best of racing experiences to global audiences.

Earlier, it was reported that the British video game developer and publisher had agreed to a $970 million deal with Take-Two Interactive, the owner of Rockstar Games and 2K Sports.

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