US-based video games firm Electronic Arts to buy racing games maker Codemasters. The deal is expected to be done in the first quarter of 2021.

Electronic Arts on Monday disclosed that it has reached an agreement to buy Codemasters in a deal worth $1.2 billion. Andrew Wilson, CEO EA said that they believe there is a deeply compelling opportunity in bringing together Codemasters and Electronic Arts to create innovative new racing games. He added that the racing category is growing, and together they will be positioned to lead into a new era of racing entertainment. He further added, He further added, "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."

EA owns the 'Need for Speed' franchise so the Codemasters addition would give it further control over a huge share of the racing game market. Under the deal, EA would pay $7.98 for each share of Codemasters with an implied enterprise value of $1.2 billion. The deal is expected to be done in the first quarter of 2021.

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