Computer games firm Electronic Arts said on Monday it reached an agreement to buy Codemasters in a deal worth $1.2 billion, trumping an earlier agreement between the British company and rival Take-Two Interactive Software.
The deal upstaged a previous transaction agreed between rival publisher Take-Two Interactive and Codemasters. The firm had agreed to acquire Codemasters for £726 million ($971 million) only last month.
The acquisition of Codemasters marks the biggest deal in EA’s history, and comes amid increasing consolidation in the video game industry as the coronavirus pandemic has accelerated demand for gaming.
In September, Microsoft announced it would buy ZeniMax Media, the company that owns Bethesda Softworks, for $7.5 billion, the biggest gaming acquisition in Microsoft’s history.
Codemasters is mostly known for its Formula One and Dirt racing game franchises. A combination with EA would bring those big titles under the same ownership as popular racing game series Need for Speed.