Take-Two acquisition of Codemasters expected to go through in early 2021
Both publishers' board of directors approve the proposed deal, valuing Codemasters at £726 million
Take-Two Interactive is expected to acquire Codemasters in the first quarter of next year.
That's according to a note to investors, which reveals the board of directors for each company have reached an agreement over the terms of Take-Two's offer.
The Grand Theft Auto publisher will use a mix of cash and shares to purchase all currently issued and yet-to-be-issued shares in Codemasters, giving Take-Two 100% ownership.
It was previously suggested the deal could value Codemasters at £759 million ($994 million), but the latest notice says this will instead by £726 million ($956 million).
The acquisition is expected to be completed by March 31, 2021.
Codemasters' CEO Frank Sagnier and CFO Rashid Varachia, as well as the rest of the senior management team, plan to stay with Codemasters after the acquisition.
Directors of the UK racing games specialist will unanimously recommend its share holders vote in favour of the acquisition at an upcoming court meeting.
Take-Two believes the combination of the two companies will be "a highly complementary fit" that "creates a global leader in interactive entertainment."
"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."
Codemasters chairman Gerhard Florin added: "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."