Take-Two has reached an acquisition agreement with Codemasters

Dirt 5
(Image credit: Codemasters)

Update: According to a report by VGC, Codemasters and Take-Two announced they reached an acquisition agreement for the previously reported sum of roughly $980 million. Both companies have made investors aware of the agreement in a note sent out on Tuesday, November 10. Given shareholder approval in an upcoming general meeting, the sale could be finalised by Q1 2021, until then the agreement is formal. In a new public statement, Take-Two once again reaffirmed its satisfaction with the deal.

"We are exceedingly pleased to announce this recommended transaction with the Board of Codemasters," Take-Two CEO Strauss Zelnick 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," Codemasters chairman Gerhard Florin stated.

Original story: Take-Two Interactive has confirmed that it has made a "possible offer" to fully acquire UK-based racing studio Codemasters in a deal that Reuters says will be worth $973 million. Assuming the deal is completed, the buyout would also give Take-Two ownership of Project Cars developer Slightly Mad Studios.

The offer will be contingent upon multiple factors, Take-Two said in a statement, including the completion of due diligence and a thumbs-up from the Codemasters board of directors. That part of it seems like a done deal already, as Codemasters said in a statement of its own that the board intends to "recommend unanimously that Codemasters' shareholders accept the Possible Offer."

"Take-Two believes that the combination of Take-Two and Codemasters would bring together two world-class interactive entertainment portfolios, with a highly complementary fit between Take-Two's 2K publishing label and Codemasters in the racing genre," the publisher said.

"In addition, Take-Two believes that it can bring benefits to Codemasters' performance by leveraging Take-Two's global distribution network and 2K’s core operating expertise in publishing, including live operations, analytics, product development, and brand and performance marketing."

Under the rules of the UK City Code on Takeovers and Mergers, Take-Two must either commit to making an offer for Codemasters, or walk away from the process, by December 4.