Electronic Arts announced today that it has reached an agreement with the Board of Codemasters for the recommended acquisition of Codemasters. 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.
Gerhard Florin, the Chairman of Codemasters, said:
“Electronic Arts and Codemasters have a shared ambition to lead the video game racing category. The Board of Codemasters firmly believes the company would benefit from EA’s knowledge, resources and extensive global scale. We feel this union would provide an exciting and prosperous future for Codemasters. This will also allow our teams to create, launch and service bigger and better games to an extremely passionate audience.”
Andrew Wilson, CEO of Electronic Arts, also added:
“We believe there is a deeply compelling opportunity in bringing together Codemasters and Electronic Arts to create amazing and innovative new racing games for fans. Our industry is growing. The racing category is growing, and together we will lead in a new era of racing entertainment. We have admired Codemasters’ creative talent and high-quality games for many years. With the full leverage of EA’s technology, platform expertise, and global reach, this combination will allow us to grow our existing franchises. It will also allows us to deliver more industry-defining racing experiences to a global fan base. We are happy that both our Boards of Directors are recommending this transaction. We look forward to welcoming such an exciting and talented team to the Electronic Arts family.”
It’s worth noting that Codemasters was previously in talks with Take-Two. However, it appears that EA’s proposal was better than Take-Two’s offer.
Stay tuned for more!