February Investment Recap: Strategic Acquisitions, Seed-Sized Funding Rounds, and Changing Ownership – The Esports Observer

February Investment Recap: Strategic Acquisitions, Seed-Sized Funding Rounds, and Changing Ownership – The Esports Observer

During the month of February 2021, The Esports Observer tracked 15 investments raised by esports-relevant companies. Disclosed investments amounted to $1.47B USD, bringing the total sum of disclosed investments in 2021 to $1.67B.

Financial terms were not disclosed for all deals highlighted in this article.

EA Completes its Acquisition of Codemasters

Credit: EA/Codemasters

Nasdaq-listed game developer and publisher Electronic Arts (EA) completed the acquisition of U.K.-based racing game developer and publisher Codemasters. EA acquired the developer at a per-share price of £6.04 GBP ($8.43) at an implied enterprise value for Codemasters of £945M ($1.32B). EA financed the acquisition with cash on hand.

Codemasters is primarily known for its racing games, including the officially licensed F1 game franchise, driver journey-focused simulator Project Cars 3, and recently launched story-driven off-road racing game DIRT 5. The acquisition will add Codemasters’ racing games to EA’s racing game portfolio, which includes several arcade racing games such as the Need for Speed franchise. EA intends to integrate Codemasters into its EA studios organization. EA expects the acquisition to “result in access to more platforms, reaching more geographies, and integration into more business models to increase consistency, reach, and revenue.”

Triggered by the acquisition, the management teams of EA and Codemasters initiated a review of the operation of both businesses to assess how they can work effectively and efficiently
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