CDM.L Share News (CDM)

(Sharecast News) - Video games developer Codemasters has agreed to be bought by US-based Take-Two Interactive Software for around £759m.

Under the terms of the deal, Take-Two will pay 485p a share in cash and stock. This is a premium of around 38.6% to Codemasters' closing share price on 22 September, which was the last day before Take-Two's initial proposal.

Codemasters chairman Gerhard Florin said: "With a leading position in sports gaming, the board of Codemasters firmly believes the company will benefit from Take-Two's broad capabilities which will help propel the long term success of Codemasters.

"In recommending this offer to shareholders, the board of Codemasters believes it is in the best interests of all stakeholders in the company. Take-Two's offer reflects the great work the management team has done since listing on AIM in 2018 at 200p and delivers an excellent return for shareholders in just two and a half years."

Take-Two is a developer, publisher and marketer of interactive entertainment for consumers around the world. Through its labels, Rockstar Games, 2K, Private Division, and Social Point, the company develops and publishes a portfolio of interactive entertainment products, including Grand Theft Auto, Red Dead Redemption, and NBA 2K.

Broker Shore Capital said: "Take-Two appears to be a good fit for Codemasters, given its large development and publishing exposure and noting the experience working in a sports franchises (NBA, WWE and PGA Tour), whether CDM shareholders benefit is another question."