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Electronic Arts completes acquisition of Codemasters and Glu Mobile


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DIRT developer may soon have a new home.

Take-Two Interactive is in talks to acquire Codemasters in a potential £740 million sale (approx. $974.5 million), Codemasters confirmed.

The DIRT and F1 series developer said that, should Take-Two Interactive make its bid official, its board intends to unanimously recommend that shareholders accept the offer.

A further announcement will be made as and when appropriate, Codemasters said.

Take-Two Interactive is the parent company of 2K Games, Rockstar Games, and Private Division.

Thanks, VGC and Tom Howard.

Update 9:15 p.m.: Take-Two Interactive has issued a press release confirming its offer to possibly acquire Codemasters.

Take-Two Interactive Software, Inc. today confirmed an announcement made by the Board of Codemasters that the Company has made a proposal to acquire the entire issued share capital of UK-based game publisher and developer, Codemasters, at a price of 485 pence (*approximately $6.40) per share (the “Possible Offer”), comprising 120 pence (*approximately $1.58) per share in cash and 365 pence (*approximately $4.82) per share payable in Take-Two stock. The Possible Offer remains conditional on, among other things, the completion of confirmatory due diligence and the recommendation of the Board of Codemasters. Take-Two reserves the right to waive any of these requirements.

The Board of Codemasters confirmed that on October 14, 2020 to Take-Two and has confirmed today that, in the event that Take-Two announces a firm intention to make an offer pursuant to Rule 2.7 of the UK City Code on Takeovers and Mergers (the “Code”) on the terms set out above, it is the current intention of the Board of Codemasters 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. 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.

In accordance with Rule 2.6(a) of the Code, Take-Two is required, by not later than 12:00 p.m. ET on December 4, 2020, either to announce a firm intention to make an offer for Codemasters in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

There can be no certainty that any offer will be made.

While discussions are ongoing, there can be no certainty that a firm offer will be made for Codemasters by Take-Two. For the purposes of Rule 2.5 of the Code, Take-Two reserves the right to:

  • Reduce the offer consideration by the amount of any dividend or other distribution or return of capital that is paid or becomes payable by Codemasters after the date of this announcement;
  • Vary the form of consideration as set out above and/or introduce other forms of consideration, such as cash in substitution for all or part of the share consideration; and/or
  • Make an offer at any time for less than 485 pence per Codemasters share: (i) with the agreement or recommendation of the Board of Codemasters; (ii) if a third party announces a firm intention to make an offer for Codemasters pursuant to Rule 2.7 of the Code, which at that date is valued at a price lower than 485 pence for each Codemasters share; or (iii) following the announcement by Codemasters of a whitewash transaction pursuant to the Code; and
  • Implement the transaction through or together with a subsidiary of Take-Two or a company which will become a subsidiary of Take-Two.
    *US$ equivalent values are stated at an exchange rate £1:$1.32.

https://www.gematsu.com/2020/11/take-two-interactive-in-talks-to-acquire-codemasters

 

 

Edited by Dav
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Following initial reports of interest, Take-Two Interactive has reached an agreement to acquire Codemasters and expects to complete the acquisition in the first quarter of 2021, the company announced.


“We are exceedingly pleased to announce this recommended transaction with the Board of Codemasters,” said Take-Two Interactive chairman and CEO Strauss Zelnick in a press release. “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. Take-Two’s offer reflects the great work the management team has done since listing on AIM in 2018 at 200p and delivers an excellent return for shareholders in just two and a half years.”


Take-Two Interactive’s rationale for the acquisition is as follows:


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 label and Codemasters. Take-Two believes that it can bring benefits to Codemasters’ performance by leveraging Take-Two’s global distribution and marketing infrastructure, together with Take-Two’s core operating expertise in live operations, analytics, product development, and brand and performance marketing.
The Take-Two Board believes there is a compelling strategic and financial rationale for the acquisition because it:


Creates a global leader in interactive entertainment publishing through the combination of Take-Two and Codemasters’ complementary and critically-acclaimed sports and racing franchises and world-class creative teams;


Enhances diversity and revenue visibility of the Take-Two IP portfolio through the addition of Codemasters’ regular title release cadence and high-quality racing titles;
Delivers compelling financial benefits for the combined entities – growth, earnings and operating margin accretive; and
Provides enhanced revenue opportunity and cost synergy potential.


The combination is expected to be accretive to Take-Two’s pro forma adjusted net income per share (excluding Take-Two’s customary adjustments used by its management and the Take-Two Board to adjust Take-Two’s US GAAP financial results) from the first full fiscal year following completion of the acquisition, which is anticipated to be Take-Two’s fiscal year 2022, ending March 31, 2022.


Frank Sagnier, Chief Executive Officer of Codemasters, and Rashid Varachia, Chief Financial Officer of Codemasters, along with the senior executive management team of Codemasters intend to remain with Codemasters following completion of the acquisition and will continue to lead the Codemasters business within Take-Two’s organization and its 2K label.
Read more about the acquisition at the Take-Two Interactive official website.

https://www.gematsu.com/2020/11/take-two-interactive-to-acquire-codemasters

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Tá aí algo que me surpreendeu. Honestamente, eu não vejo com bons olhos, a não ser que a T2 dê total liberdade e incentivo para que a Codemasters continue comprando as licenças e tendo a liberdade criativa de sempre para fazer suas franquias tradicionais. Com certeza o interesse é muito mais na tecnologia para outros jogos do que efetivamente no portfólio da empresa, mas espero estar errado.

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  • Dav changed the title to Electronic Arts to acquire Codemasters, outbidding Take-Two Interactive

EA-Codemasters_12-14-20.jpg

 

electronic Arts has reached an agreement to acquire Codemasters, outbidding the offer Codemasters initially agreed to in November with Take-Two Interactive, the company announced. Electronic Arts will acquire Codemasters for US$1.2 billion, with the acquisition expected to be completed in the first quarter of 2021.

“Electronic Arts and Codemasters have a shared ambition to lead the video game racing category,” said Codemasters chairman Gerhard Florin in a press release. “The Board of Codemasters firmly believes the company would benefit from EA’s knowledge, resources and extensive global scale—both overall and specifically within the racing sector. We feel this union would provide an exciting and prosperous future for Codemasters, allowing our teams to create, launch and service bigger and better games to an extremely passionate audience.”

Electronic Arts CEO Andrew Wilson added, “We believe there is a deeply compelling opportunity in bringing together Codemasters and Electronic Arts to create amazing and innovative new racing games for fans. Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment. We have admired Codemasters’ creative talent and high-quality games for many years. With the full leverage of EA’s technology, platform expertise, and global reach, this combination will allow us to grow our existing franchises and deliver more industry-defining racing experiences to a global fan base. We are pleased that both our Boards of Directors are recommending this transaction, and we look forward to welcoming such an exciting and talented team to the Electronic Arts family.”

Electronic Arts’ rationale for the acquisition is as follows:

  • Electronic Arts believes the combination of EA and Codemasters will enable further growth and success for Codemasters and EA’s popular and innovative racing franchises.
  • Bringing together the combined expertise and talent from Codemasters’ critically-acclaimed sports and racing franchises Formula One, DiRT, DiRT Rally, GRID, and Project Cars with EA’s global Need for Speed franchise, fan-favorite Real Racing mobile game and EA Sports brands will enable our teams to innovate further, and meaningfully increase the delivery of content and experiences to a growing, global audience for racing entertainment.
  • Codemasters’ deep creative talent which has produced high-quality racing games for many years, including the Formula One franchise that continues to deliver great entertainment for F1’s growing fan base.
  • EA believes it can help accelerate Codemasters’ performance by leveraging EA’s deep expertise in live services operations, game analytics and technology. In addition, EA’s central services teams across development technology, art & motion capture, quality verification, compliance, and localization will all be resources available to Codemasters.
  • EA’s global publishing, marketing and game development support capabilities will also strengthen Codemasters’ existing capabilities, expanding the addressable market for Codemasters’ franchises.
  • The combination of Codemasters and Electronic Arts will enable the development and delivery of a market-leading portfolio of creative and exciting racing games and content to more platforms and more players around the world.
  • The union also creates ongoing and expanded ways for players to engage with the combined portfolio of sports and racing games through EA’s industry-leading multi-platform subscription services.
  • Bringing together Codemasters and Electronic Arts also delivers compelling financial benefit to the combined group. The acquisition is expected to grow net bookings and underlying profitability.
  • Frank Sagnier, Chief Executive Officer of Codemasters, and Rashid Varachia, Chief Financial Officer of Codemasters, along with the senior executive management team of Codemasters intend to remain with Codemasters following completion of the acquisition and will continue to lead the Codemasters business within EA’s organization.

https://www.gematsu.com/2020/12/electronic-arts-to-acquire-codemasters-outbidding-take-two-interactive

 

 

Edited by Dav
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  • 2 months later...

Electronic Arts completes acquisition of Codemasters

Need for Speed, Real Racing, DIRT, GRID, and more now under one roof.

EA-Codemasters_02-18-21.jpg

Electronic Arts has completed the acquisition of Codemasters, the company announced.

Get the full press release below.

Electronic Arts Inc. , a global leader in interactive entertainment, today announced the completion of its acquisition of Codemasters for 604 pence (approximately US$8.37*) in cash for each ordinary share of Codemasters with an implied enterprise value of US$1.2 billion*.

The combination of Electronic Arts and Codemasters marks an exciting new era in racing game entertainment. Bringing together two of the most passionate, creative and talented game developer and publishing organizations in the industry will enable further growth and continued success for a stable of the most powerful and popular racing brands in the world, including Formula 1, Need for Speed, DIRT, DiRT Rally / WRC, GRID, Project CARS, Real Racing, and more. With this critically acclaimed portfolio, Electronic Arts and Codemasters will be positioned to bring fans a regular cadence of new and exciting racing content, in addition to reaching across more platforms and more regions of the world.

Codemasters’ critically-acclaimed franchises Formula 1, DIRT, DiRT Rally, GRID, and Project CARS will sit alongside Electronic Arts’ global Need for Speed franchise, fan-favorite Real Racing mobile game, and its EA Sports brands, enabling greater innovation and increasing the capability to deliver content and experiences to a truly global audience for racing entertainment.

“This is the beginning of an exciting new era for racing games and content as we bring together the talented teams at Electronic Arts and Codemasters,”said Andrew Wilson, CEO of Electronic Arts. “Racing fandom continues to grow worldwide, and the franchises in our combined portfolio will enable us to create innovative new experiences and bring more players into the excitement of cars and motorsport. Our teams will be a global powerhouse in racing entertainment, with amazing games for players on every platform, and we can’t wait to get started.”

“Today is a landmark in Codemasters’ history, and an exciting day for our employees and players,” said Frank Sagnier, CEO of Codemasters. “The partnership with EA will enable our teams to take our highly-acclaimed franchises to new heights and reach a huge global audience through their player network. Together we can redefine the landscape of racing games to create even more compelling experiences for racing fans around the world.”

The union will open significant growth opportunities for Codemasters franchises with access to Electronic Arts’ network of more than 430 million players and industry-leading multi-platform subscription services. Electronic Arts also brings deep data and analytics capabilities to the Codemasters development and publishing teams, providing audience insights to accelerate the performance of key franchises. These capabilities, as well as Electronic Arts’ global publishing, marketing and game development strength, will unlock new opportunities for the combined group’s portfolio of racing games and content to reach and deeply engage more players around the world on console, PC and mobile.

The acquisition of Codemasters is part of Electronic Arts’ growth strategy focused on delivering more exceptional experiences and top live services, and reaching more players on more platforms around the world. The acquisition of Codemasters is also expected to grow net bookings and underlying profitability for Electronic Arts.

The acquisition of Codemasters was financed with cash on hand.

https://www.gematsu.com/2021/02/electronic-arts-completes-acquisition-of-codemasters

Electronic Arts to acquire Glu Mobile

Transaction expected to close by June 30, 2021.

EA-Glu_02-08-21.jpg

Electronic Arts has entered into an agreement to acquire mobile games publisher Glu Mobile for $2.1 billion in enterprise value in a transaction expected to close in the quarter ending June 30, 2021, the companies announced.

According to Electronic Arts, the acquisition will add significant scale to its mobile games business, combining to create “a leading mobile product portfolio that includes more than 15 top live services across fast-growing genres,” as well as build upon Electronic Arts’ existing network of 430 million players, including more than 100 monthly active players in mobile, to reach new audiences worldwide.

“Our acquisition of Glu combines amazing teams and deeply-engaging products to create a mobile games leader with proven expertise across many fast-growing genres,” said Electronic Arts CEO Andrew Wilson in a press release. “Mobile continues to grow as the biggest gaming platform in the world, and with the addition of Glu’s games and talent, we’re doubling the size of our mobile business. With a deep IP portfolio and an expanding global audience, we’ll deliver more exciting experiences for our players and drive further growth for Electronic Arts.”

Glu Mobile CEO Nick Earl added, “This transaction is the culmination of the tremendous work of the Glu team to deliver world-class interactive experiences for our players, while driving business momentum that has led to strong financial and operational results. It represents a terrific outcome for all of our stockholders and other key constituents. As part of Electronic Arts, we will continue capitalizing on the opportunities ahead in the expanding mobile gaming industry.”

Glu Mobile’s lineup of games includes Covet Fashion, Design Home, Diner Dash Adventures, Disney Sorcerer’s Arena, MLB Tap Sports Baseball, and more.

https://www.gematsu.com/2021/02/electronic-arts-to-acquire-glu-mobile

 

 

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  • Dav changed the title to Electronic Arts completes acquisition of Codemasters and Glu Mobile

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