“CMRDirt_che_02_res” by bdgamers is licensed under CC BY-NC-SA 2.0

Gaming company Take-Two Interactive has moved to acquire British video game developer Codemasters in a deal worth nearly $1 billion. Take-Two has proposed a cash-and-stock offer that sums up to 739.2 million pounds ($973.6 million) to acquire Codemasters, a publicly-traded company that’s seen its stock rise nearly 70% in this year. Take-Two has penned its acquisition offer but hasn’t yet reached a formal agreement with Codemasters.

Codemasters has to go through a shareholder vote to see Take-Two’s deal pass through. The company’s board says it plans to unanimously recommend acceptance of Take-Two’s offer to its shareholders, with a window open until the 4th of December, 2020 for Take-Two to reach a final deal.

Codemasters is a major British video game developer and publisher that’s known for its popular Colin McRae and official Formula 1 racing games. The company has benefitted from a general surge in video game sales to customers staying at home more due to lockdowns amid a pandemic and as such seen its shares rise more than 68% since the beginning of this year. 

Just like Codemasters, its intended acquirer Take-Two has also benefitted from a gaming surge and recently posted financial results that widely beat expectations. Take-Two, a publicly-traded gaming company with a market value of around $20 billion, has apparently seen Codemasters as a good bet to boost its prospects. 

A $974 million purchase of Codemasters will mark one of the biggest acquisitions to happen in the British gaming industry.

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