Codemasters has acquired Project Cars developer, Slightly Mad Studios for $196m (£152.2m).
The deal comprises of an initial consideration of $30m (£23.3m) – “to be satisfied by the payment of $25m/£19.4m in cash and 1,787,014 ordinary shares” on completion – plus a deferred and earn-out consideration of up to $166m/£128.9m once the studio hits “certain milestones and earn-out performance targets” each year from 2020 to 2022.
“The acquisition will cement Codemasters’ position as a world-leading games developer and publisher of racing videogames and expands its portfolio to include the award-winning Project Cars, together with an unannounced Hollywood blockbuster title,” says a press release from Codemasters.
Frank Sagnier will remain CEO of Codemasters whilst Slight Mad CEO, Ian Bell, will retain his position of founder and CEO of Slightly Mad Studios.
The acquisition now sees Codemasters employ approximately 700 people globally, with offices in London, Birmingham, Southam, and Runcorn.
“We are delighted to bring such an incredible racing game developer to the Codemasters family, and this unequivocally establishes us as a global powerhouse in the development of racing titles,” said Sagnier, CEO at Codemasters. “We share the same passion and vision and our new partnership will accelerate our growth. With more streaming services coming to market and the next generation of games consoles due in 2020, this is the perfect time for Codemasters to take its next step.”
“Our combined racing games portfolio is the envy of the industry and this new partnership will enable us to learn from each other, share resources and take advantage of emerging platforms and technology,” added Bell, founder and chief executive at Slightly Mad Studios. “My team is excited to be joining Codemasters and we can’t wait to forge a relationship based on creativity, passion and the desire to create new racing experiences that excite and delight our communities.”