By Adam Hood
Veteran UK game development studio Codemasters has reached an agreement with US-based Take-Two Interactive on the terms of the studio’s sale.
The deal will involve a cash and shares offer, which has valued the UK developer at roughly £750 million ($980 million).
Both companies said that they believe the acquisition will be complete during the first quarter of 2021.
Once the deal is completed, Codemasters will make games under one of the biggest publishers in gaming, 2K, who are responsible for publishing some major hits, including the Bioshock and Borderlands franchises.
Codemasters was founded in 1986 by brothers Richard and David Darling. They specialise in racing games such as OnRush, F1, Grid, and Dirt. The company has also recently earned the rights to the FIA World Rally Championships (WRC).
In 2019 they themselves acquired the developer Slightly Mad, which developed the Project Cars series and Fast & Furious Crossroads.
As well as 2K, Take-Two are the owners of Rockstar Games, creators of the infamous Grand Theft Auto series.
In a statement published last Tuesday, Take-Two CEO Strauss Zelnick stated that he believed that Codemasters racing games fit well with its roster of sports games.
He said, “We are exceedingly pleased to announce this recommended transaction with the Board of Codemasters.
“Codemasters has a renowned history of creating some of our industry’s most beloved and commercially successful racing franchises, and we believe that their offerings will be highly complementary to our sports portfolio and enhance further our organization’s long-term growth.”
“Moreover, we look forward to welcoming Codemasters’ senior management and development teams into our Take-Two family and sharing in our vision to deliver the highest quality entertainment experiences and aim to be the most innovative, creative and efficient company in our industry.”
Codemasters chairman Gerhard Florin claims it will bring long term success. He said: “With a leading position in sports gaming, the Board of Codemasters firmly believes the Company will benefit from Take-Two’s broad capabilities, which will help propel the long term success of Codemasters.