Electronic Arts Acquires U.K.-based Codemasters For $1.2B

Electronic Arts is prioritizing their racing video game category with a $1.2 billion purchase of London-based developer Codemasters.

Codemasters, creator of some of the world’s most popular racing games, previously agreed to a $970 million deal with 2K and Rockstar’s parent company Take-Two Interactive before EA swooped in over the weekend. Take-Two’s market capitalization is roughly half that of EA’s $40 billion.

The Codemasters deal is the biggest acquisition in EA’s history. The broader video game industry has seen increased consolidation as consumer spending skyrockets.

• Microsoft announced a $7.5 billion acquisition of Bethesda Softworks parent company ZeniMax Media in September
• Zynga bought Turkish mobile game developer Peak Games for $1.8 billion in June
• Swedish company Modern Times Group paid $375 million for mobile game developer Hutch Games this month

Publishing Codemasters titles alongside “Need for Speed” and “Burnout” franchises will secure EA a massive share of the racing game segment. The top competitors remaining are Sony’s “Gran Turismo” series and Microsoft’s “Forza.”

EA is one of the world’s foremost sports video game developers, with NFL, FIFA and NHL titles. Year-to-date spending on all video game hardware and content reached $44.5 billion through November.