Gowling WLG is advising leading video games maker Codemasters on its acquisition of racing simulation specialists, Slightly Mad Studios, with consideration payable of up to £151m and its associated £20m equity fundraising by way of a placing of new shares.

Codemasters is one of the oldest names in the UK video games industry and listed on the AIM market of the London Stock Exchange in 2018. The company now employs around 700 people globally with offices in London, Birmingham, Southam and Runcorn.

Slightly Mad Studios has been established for 10 years and is behind the successful Project CARS franchise. The acquisition will cement Codemasters' position as a world-leading games developer and publisher of racing videogames.

Gowling WLG has advised Codemasters since its AIM IPO in June 2018. Corporate partner Sunil Kakkad led the team that advised the company on the acquisition of Slightly Mad Studios and the equity fundraising, which included director Samantha Myers and associate Tom Smith, both of whom were also part of the team that advised Codemasters on its AIM IPO.

Sunil said: "The acquisition of Slightly Mad Studios is another major milestone for Codemasters, following its successful IPO in 2018. Gowling WLG is pleased to have supported the company to expand its portfolio and fundraising by way of a placing of new shares. The acquisition strengthens Codemasters' position as one of the world's leading games developers and we wish them all the best with this new venture."

Frank Sagnier, CEO of Codemasters Group plc, said: "We were thrilled to have Gowling WLG by our side on this deal. The team's M&A and capital markets experience is extremely valuable to us.

"We are delighted to bring such an incredible racing game developer to the Codemasters family, and this unequivocally establishes us as a global powerhouse in the development of racing titles. We share the same passion and vision and our new partnership will accelerate our growth. With more streaming services coming to market and the next generation of games consoles due in 2020, this is the perfect time for Codemasters to take its next step."