(Alliance News) - Games developer Codemasters Group Holdigns PLC said after the market close Thursday it proposed to buy fellow developer Slightly Mad Studios Ltd for up to USD196 million, with a GBP20 million placing planned to cover the initial cash element.
Codemasters will pay an initial USD30 million - about GBP23.3 million - through cash and shares. Of this initial consideration, GBP19.4 million will be settled in cash and the remainder through the issue of 1.8 million shares.
To pay the cash element, Codemasters will place 9.5 million shares at a placing price of 210 pence per share to raise GBP20 million. Shares in Codemasters closed 1.7% higher at 210.00 pence in London on Thursday, giving the company a market capitalisation of GBP294 million.
In addition to the initial consideration, a deferred and earn-out consideration of up to USD166 million could also be paid. Any further payments will also be settled in a mixture of cash and shares.
"Codemasters' acquisition of SMS will create a global leader in the racing genre," Chief Executive Officer Frank Sangier said. "Their focus on AAA quality and the passion that they put into everything they create mirrors our own. Both companies have a number of world renowned, successful franchises along with exciting product development pipelines, supported by leading IP and some of the best talent in the gaming industry."
"The enlarged Codemasters will have greater scale and reach, diversified, predictable revenue streams and the opportunity to bring outstanding entertainment to a far wider audience," Sangier added.
By Ahren Lester; ahrenlester@alliancenews.com
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