Video game maker Electronic Arts (EA) said Monday it has reached an agreement to buy Codemasters in a $1.2 billion deal, beating out Codemasters’ previous agreement with Take-Two Interactive Software.
According to the stock market, Codemasters shares rose 18.7% to 637.84 pence, higher than the value offered by EA to stock investors in the company, as it offered 604 pence per share, and Codemasters famous for its Formula 1 F1 games on the Playstation 4 stated that it considers the new offer better. Take-Two made a cash and stock offer valuing it at 485 pence per share, while Take-Two said it was considering its position on the deal.
EA, along with other competitors such as Activision Blizzard and Take-Two, has benefited from the increase in video game sales in the United States thanks to the tendency for people to spend most of their time indoors due to the Corona pandemic, but this trend will reverse next year with the start of the spread of the vaccine against the virus.
According to the data of the deal, the offer made by EA represents a value that is 13.1% higher than the last closing price for Codemasters shares, and the deal is expected to close in the first quarter of 2021, and EA expects that the deal will increase the financial value and basic profits of the company, and the investment bank will represent UBS Investment Bank is the financial advisor to Electronic Arts, while Jefferies will represent Codemasters.