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EA is buying UK gaming company Codemasters for $1.2 billion

It's part of a bid "to lead the video game racing category."

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The Formula One game developer is being acquired by the Need For Speed developer.

EA

Electronic Arts said Monday that it will acquire Codemasters for $1.2 billion after reaching an agreement with the UK gaming company. It's part of a bid "to lead the video game racing category," according to a press release.

"We believe there is a deeply compelling opportunity in bringing together Codemasters and Electronic Arts to create amazing and innovative new racing games for fans," said EA CEO Andrew Wilson. "Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment."

Read more: The best Xbox One games for 2020

Codemasters has developed racing games like Formula One, Dirt and Dirt Rally, with EA developing the hugely successful Need for Speed franchise. EA said it can lend its game analytics, technology, art and motion capture, marketing, publishing and game development expertise to Codemasters games.

EA's subscription service will also be gaining the Codemasters games.

EA's acquisition of Codemasters is expected to close in the first three months of 2021, with Codemasters shareholders getting about $7.98 a share.