Electronic Arts has reached an agreement for the recommended acquisition of Codemasters Group Holdings PLC

Redwood City, California – (Electronic Arts Inc. (NASDAQ: EA) today it reached an agreement with Codemasters’ board of directors regarding the recommended acquisition of Codemasters, the UK game developer and publisher. In this transaction, Codemasters shareholders are entitled to receive 604 pence (approximately $ 7.98 USD *) in cash per common share from Codemasters with an implicit project value of $ 1.2 billion *. The acquisition is expected to be completed in the first quarter of 2021.

Electronic Arts and Codemasters share a common ambition to lead the video game racing category. Codemasters firmly believes that the company will benefit from EA’s knowledge, resources, and wide global reach – generally and specifically in the racing sector. We believe this union will provide an exciting and prosperous future for Codemasters. Allowing our teams to create, launch and serve bigger and better games for a very enthusiastic audience, ” Said Gerhard Florin, president of Codemasters.

“We believe there is a very compelling opportunity to bring together Codemasters and Electronic Arts to create amazing and innovative new racing games for the fans. Our industry is developing, the racing class grows, and together we will be at the forefront in a new era of racing entertainment. We have been impressed by Codemasters’ creative talent and high-quality games for many years. By making full use of EA technology, platform expertise, and global reach, this combination will allow us to grow our existing franchises and bring more industry-specific racing experiences to our global fanbase. We are pleased that both of our boards are recommending this deal, and we look forward to welcoming this exciting and talented team to Electronic Arts Family, Andrew Wilson, CEO of Electronic Arts said.

Strategic rationale:

  • Electronic Arts believes that combining EA with Codemasters will enable further growth and success for Codemasters and the popular and innovative racing franchises from EA.

  • Combining 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 our teams are working on Innovate more, and more purposefully provide content and experiences to a growing global audience for racing entertainment.

  • Codemasters’ deep creative talent that has produced high-quality racing games for many years, including the Formula One franchise that continues to provide great entertainment to the growing F1 fan base.

  • EA believes it can help accelerate Codemasters by leveraging EA’s deep expertise in live service operations, game analytics, and technology. Additionally, EA’s central service teams via development techniques, art and motion capture, quality verification, compliance and localization will all be resources available to Codemasters.

  • EA’s publishing, marketing, and global game development support capabilities will also augment existing Codemasters, expanding the target market for Codemasters franchises.

  • The combination of Codemasters and Electronic Arts will enable the development and delivery of a market-leading range of creative and exciting racing games and content to more platforms and more players around the world.

  • The federation is also creating continuous, expanded ways for players to participate in the combined sports and racing games range through EA’s industry-leading multi-platform subscription services.

  • And combining Codemasters and Electronic Arts together provides a disguised financial benefit to the combined group. The acquisition is expected to lead to growth in net bookings and core profitability.

  • Frank Sagnier, CEO of Codemasters, and Rachid Varachia, CFO of Codemasters, along with Codemasters’ senior executive management team intend to remain with Codemasters after the acquisition is completed and will continue to lead the Codemasters business within the EA Foundation.

For more information on the acquisition, please visit: Investor.ea.com.

* Equivalent values ​​are quoted in US dollars at an exchange rate of US $ 1.3211: 1 GBP on December 11, 2020. Enterprise value is based on Codemasters’ audited balance sheet as of March 31, 2020.

The UBS Investment Bank acts as financial advisor to Electronic Arts, Skadden, Arps, Slate, Meagher & Flom (UK) LLP as legal counsel to EA.

Jefferies International Limited acts as financial advisor and joint broker, and Liberum Capital Limited acts as a joint advisor and intermediary to Codemasters in relation to the acquisition. Gowling WLG (UK) LLP acts as legal advisor to Codemasters.

All trademarks and copyrights contained herein are the property of their respective owners.

Forward-looking statements

Statements made here, which are not historical facts, are forward-looking statements and are subject to change. Phrases that include words such as “expect,” “believe,” “expect,” “intend,” “estimate,” “plan,” “expect,” “seek,” “aim,” “will,” “may,” and Most likely, “should,” “could” (and negative for any of these terms), and the expressions “future” and the like also define forward-looking statements.These forward-looking statements are not guarantees of future performance and reflect current management expectations. Our actual results may differ materially from those discussed. In forward-looking statements.Some of the factors that may cause the company’s results to differ materially from its expectations include the following: the impact of the acquisition announcement on the company’s business and its operational results; the occurrence of any circumstance or any other events that could lead to the termination of the acquisition, or failure to fulfill the conditions to complete the acquisition. , Including obtaining all necessary regulatory approvals; the company’s ability to successfully integrate Codemasters’ operations and personnel; the impact of the COVID-19 pandemic and sales of the company’s products and services; the company’s ability to develop and support digital products and services, including managing online security and privacy; Interruption of our products, services, and technology infrastructure; the company’s ability to Expense management. Competition in the interactive entertainment industry; Government regulations; Effectiveness of the company’s sales and marketing programs; Timely development and release of the company’s products and services; The firm’s ability to realize the benefits expected from acquisitions; Consumer demand for, and the availability of an adequate supply of console hardware units; The company’s ability to anticipate consumer preferences among competing platforms; The company’s ability to develop and implement new technology. Fluctuations in foreign exchange rates; General economic conditions; changes to our tax rates or tax laws; And other factors described in Part Two, Section 1A of Electronic Arts’ most recent quarterly report on Form 10-Q under “Risk Factors,” as well as in other documents we have submitted to the SEC, including our annual report on Form 10. K-for the fiscal year ending March 31, 2020.

These forward-looking statements are effective as of December 13, 2020. Electronic Arts has no obligation to review or update any forward-looking statement for any reason, except as required by law.

About electronic arts

Electronic Arts Inc. (NASDAQ: EA) is a global leader in digital interactive entertainment. The company develops and delivers games, content and online services for internet-connected consoles, mobile devices, and personal computers. In fiscal year 2020, EA recorded GAAP net revenue of $ 5.5 billion. Headquartered in Redwood City, California, EA is best known for its critically acclaimed high-quality brands such as EA SPORTS ™ FIFA, Battlefield ™, Apex Legends ™, The Sims ™, Madden NFL, Need for Speed ​​™ and Titanfall ™ and Plants vs. Zombies ™. More information on EA is available at www.ea.com/news.

EA SPORTS, Ultimate Team, Battlefield, Apex Legends, The Sims, Need for Speed, Titanfall and Plants vs. Zombies are trademarks of Electronic Arts Inc. Madden, NFL and FIFA are the property of their respective owners and are used with permission.

Important Notices About Financial Advisors

UBS AG London Branch is authorized and regulated by the Financial Market Supervisory Authority in Switzerland. It is authorized by the PRA and is regulated by the FCA and limited regulations by the PRA in the United Kingdom. UBS AG London Branch acts as financial advisor to EA and not to anyone else with respect to the acquisition. With respect to these matters, UBS AG London, its subsidiaries, directors, officers, employees and agents shall not consider anyone else as their client, nor shall they be liable to anyone else for providing the protection granted to their clients. Or to provide advice in relation to the acquisition, the contents of this advertisement, or any other matter referred to herein.

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