Take-Two is due to purchase Codemasters in Q1 next year.
In a note sent to investors, the two investors confirmed that they had reached a formal agreement, in a cash and shares offer that values the Dirt and F1 publisher at around £750m ($980m) to give Take-Two complete ownership.
This confirms earlier reports that the two were in talks, which emerged earlier this week. The acquisition is set to be completed by March 31, 2021
Upon the deal’s completion, Codemasters will retain its existing leadership of CEO Frank Sagnier, CFO Rashid Varachia and the rest of its senior management team.
“We are exceedingly pleased to announce this recommended transaction with the Board of Codemasters,” said Take-Two CEO Strauss Zelnick. “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.”
“With a leading position in sports gaming,” added Codemasters chairman Gerhard Florin, “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. In recommending this Offer to shareholders, the Board of Codemasters believes it is in the best interests of all stakeholders in the Company.”