Codemasters agrees £759m sale to US rival Take-Two

UK video game firm Codemasters has agreed to be taken over by Grand Theft Auto owner Take-Two in a £759 million deal.

Last week, Codemasters told investors it had received an offer from the US game producer but has now sealed the deal.

The UK company, which specialises in racing games and develops the Formula One, Dirt and Grid franchises, said accepting shareholders will get £1.20 in cash and 0.2834 new Take-Two shares for each Codemasters share held.

The Warwickshire-based company has said it will unanimously recommend the offer to shareholders.

Codemasters’s chief executive Frank Sagnier and chief financial officer Rashid Varachia are set to remain with the business.

Gerhard Florin, chairman of Codemasters, 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.

“In recommending this offer to shareholders, the board of Codemasters believes it is in the best interests of all stakeholders in the company.”

Strauss Zelnick, chairman and chief executive officer of Take-Two, said: “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 organisation’s long-term growth.

“Moreover, we look forward to welcoming Codemasters’s 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.”

Shares in Codemasters were 4.4% lower at 457.1p after early trading on Tuesday.