Codemasters has announced it is to acquire Sega Racing Studio, the troubled development team that closed its doors earlier this month.
The outfit, based in Solihull, consists of 40 team members, and most recently worked on Sega Rally.
"In seizing this opportunity, we have created additional resources to escalate our plans in the racing segment,” commented Rod Cousens, chief executive of Codemasters.
"We hope to welcome more than 40 people to the company and we have enjoyed the full co-operation of our friends at Sega in making this happen.
"It is good business for Codemasters, an exciting prospect and there will be more to come as we are not content to stand still," he added.
Codemasters already has a highly specialised racing team responsible for the Colin McRae and Race Driver franchises, amongst others.