Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
Check out our straightforward definitions of common legal terms.
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Access our unrivalled global news content, business information and analytics solutions
Insurance, risk and compliance intelligence using big data, proprietary linking and advanced analytics.
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Codemasters Group Holdings Inc may find itself the subject of a bidding war this Christmas, after US video game giant Electronic Arts Inc (EA) announced a firm offer for the company on 14 December.
The offer comes a month after one of EA’s main rivals, Take-Two Interactive Software Inc, (the creator of Grand Theft Auto), announced a firm offer for Codemasters valuing the UK video game company at £759 million. The Codemasters board recommended that shareholders accept the Take-Two cash and shares offer, which would guarantee the directors’ job security.
The deal led to backlash from some investors who claimed the offer was too low, while others were unhappy that US securities would make up some of the consideration. However, Codemasters withdrew its recommendation for the Take-Two offer shortly after EA announced its all-cash competing offer that would value the AIM 100 company at £945 million, quashing the likelihood of a shareholder revolt.
The board of Codemasters have announced that they intend to unanimously recommend the EA offer instead, stating that it represented a ‘superior offer for Codemasters shareholders as compared with the Take-Two Offer’.
Notably, despite the recommendation the board is unable to provide irrevocable undertakings to vote in favour of the EA offer, after providing undertakings to Take-Two, which are to remain binding in the event of a competing offer.
Codemasters has seen its share price rapidly increasing since the onset of the pandemic, as global sport tournament cancellations saw a rise in popularity for sporting games. In line with this, Formula One held an e-sports tournament earlier this year based on Codemasters software. The competing offer has further pushed up its share price, with shares closing 23% higher on 14 December than on 11 December (being the last business day prior to the announcement).
Commenting on the acquisition, EA CEO Andrew Wilson said the following:
‘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.’
EA, who are behind the massive Need for Speed franchise and the Fifa games, is considered to be the second largest gaming company in the US and Europe by revenue, with revenues of over £4 bn, compared to Take-Two, who boasted revenues of just over £2 bn in 2020.
Take-Two responded that it is considering its position in light of the news and will make a further announcement in due course.
Market Tracker will continue to monitor this transaction as it develops.
Free trials are only available to individuals based in the UK
* denotes a required field
Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.
0330 161 1234