EA provided $ 1.2 billion to buy Codemasters.
The Codemasters Board of Directors accepted the offer, but it is now subject to a shareholder vote.
Grand Theft Auto and Borderlands publisher Take-Two were in talks to buy Warwickshire’s Southern-based Codemasters. This was after closing nearly $ 1 billion in cash and stock trading.
However, the EA offer is a full cash offer of £ 6.04 per common stock of Codemasters. Codemasters has switched that recommendation to an EA offer.
The EA wants to close the deal in the first quarter of 2021, but there are many hoops that the company has to jump over before crossing the finish line. First, Take-Two could come back with an improved offer and trigger a bidding war.
If the EA is successful, the deal will put the UK racing game powerhouse developer under the same umbrella as the developer behind Burnout and Need for Speed, Criterion. Codemasters develops a number of owned intellectual property such as Dirt, F1 and Grid.
“EA and Codemasters have a common ambition to lead the racing category of video games,” said Codemasters Chairman Gerhard Florin.
“The Codemasters Board of Directors is confident that EA’s knowledge, resources, and broad global scale will benefit the company overall, especially within the racing sector. This union inspires Codemasters. Providing a targeted and prosperous future, the team will launch and service larger, better games to a very passionate audience. “